If a company has an enterprise value of $1500 million, and equity value of $1200 million. Which of the followings are right? (two correct answers) the company has more debt than cash. the company has more cash then debt. the company has a net debt $300 million. the company has a debt $300 million. the company has a net debt -300 million.

Assume ABC Corporation is a multinational company with the following financial information: Market value of equity (E): $500 million Market value of debt (D): $300 million Market value of preferred stock (PS): $50 million Cost of equity (Re): 10% Cost of debt (BTrd): 5% Corporate tax rate (Tc): 25% Cost of preferred stock ( Rps): 8% a. Calculate the WACC for ABC Corporation. Needs to be done in Excel

A company begins with the following simple balance sheet: $10 million in real assets; $1 million cash; $5.5 million each in owners’ equity and debt.  Which of the following actions will decrease a company’s leverage ratio? Choose two      Use half of the cash from the balance sheet to purchase equipment     Borrow an additional $1 million and purchase equipment     Raise an additional $1 million in equity to purchase equipment     Raise an additional $1 million in equity to pay off debt

A company has $20 billion of sales and $1 billion of net income. Its total assets are $10 billion. The company’s total assets equal total invested capital, and its capital consists of half debt and half common equity. The firm’s interest rate is 5% and its tax rate is 40%. Use this as a guide for computing EBIT (work up the firm's income statement): EBIT Less: Interest EBT Less: Taxes Taxes (40%) Net Income Question: What is its ROIC?

Beranek Corp has $800,000 of assets (which equal total invested capital), and it uses no debt—it is financed only with common equity. The new CFO wants to employ enough debt to raise the total debt to total capital ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?   a. $571,429     b. $320,000     c. $1,120,000     d. $160,000     e. $480,000

Which of the following would affect shareholders' equity?   Group of answer choices   A company borrows $100 million and buys $100 million in equipment.   A company sells $100 million in assets for $100 million cash.   A company receives payment for $100 million in accounts receivable.   A company pays $100 million to shareholders as a dividend.

Use the information below to build a properly formatted income statement. A: The firm has 12,640,500 shares outstanding and EPS is $3.20.Calculate  Net Income . B: The firm's corporate tax rate is 40%. Calculate the firm's EBT. C: After completing A and B above, what is the firm's corporate tax expense? D: The firm's  Revenue  is $183,600,000 and its operating margin is 45.00%. Calculate EBIT. E: After completing the above: Gross Profit  is 1.65 times its  EBIT . Calculate Gross Profit . F: Given the above information, calculate the firm's  Operating Expenses . G: Given the above information, calculate the firm's  Interest Expense .

Let It Be, Inc. has shareholders' equity of $150,800. The firm owes a total of $144,000 of which 40 percent are current liabilities. The firm net fixed assets of $190,600. What is the amount of the net working capital?

According to GAAP, your firm has equity worth $6billion, debt worth $4 billion, assets worth $10 billion. The market values your firm's 100 million shares at $75 per share and the debt at $4 billion. What is the market value of your assets?