You are thinking of investing in Nikki T's, Inc. You have only the following information on the firm at year-end 2021: net income is $310,000, total debt is $2.50 million, and debt ratio is 55 percent. What is Nikki T's ROE for 2021? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Q: The Severn Company plans to raise a net amount of$270 million to finance new equipment in early…
A: Excel Spreadsheet: Excel Workings: Determine the expected EPS under the debt financing method:…
Q: Allam’s Corporation had the following figures in 2019: -Interest rate on loan debt is 14% -Tax…
A: Weighted Average Cost of Capital (WACC) is the rate at which the company is willing to pay to its…
Q: QR Corporation is considering the following alternative plans of financing for raising $4,000,000:…
A: Earning per share (EPS) is the widely used standard to gauge the value of a company. It ascertains…
Q: You are looking to invest in your company's 401(k) for your retirement. Their conservative plan…
A: The two-way data table: The two-way data table can be used to assess the impact of various…
Q: Urgent Care had total assets of $500,000 and an equity balance of $350,000 at the end of 2019. One…
A:
Q: Use the percentage of sales forecasting method to compute the additional financing needed by…
A: Note: All assets, except “cash,” are expected to vary proportionately with sales. Of total…
Q: Houle Plumbing Products Ltd. reported the following data in 2020 (in millions): E (Click the icon to…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Leverage…
Q: CelebNav, Inc. had sales last year of $750,000 and the analysts are predicting a good year for the…
A: Given, sales last year = $750,000
Q: Assume that today is December 31, 2018, and that the following information applies to Abner…
A: Free Cash Flow (FCF) = Net Operating Profit After Tax(NOPAT) + Depreciation Expenses - Capital…
Q: Use the percentage of sales forecasting method to compute the additional financing needed by…
A:
Q: For the year ending December 31, 2017, sales for Corporation Y were $67.81 billion. Beginning…
A: Calculate the sales for each year as follows: Note 1: Calculate the increase in sale by multiplying…
Q: You are working for an imports-exports company. In the current financial year, your company has a…
A: Here, Net Income is $851,000 Cost of New Project is $500,000
Q: Use the percentage of sales forecasting method to compute the additional financing needed by…
A: Additional financing needed = Total funds needed - additional retained earnings
Q: In 2020, Jubail Corporation is currently analyzing two investment opportunities (buying stocks in…
A: 1. Return on Equity as per Du Pont Method = Net profit Margin * Total Assets Turnover ratio *…
Q: You expect to receive $33,000 at graduation in two years. You plan on investing it at 9.75 percent…
A: Time = ln(Future value / Present value) / ln(1 + Rate) Future value = $168,000 Present value =…
Q: Oblems Use the percentage of sales forecasting method to compute the additional financing needed by…
A: In this we need to calculate the increase in the sales and working capital and that would be the…
Q: Bavarian Brewhouse had after tax earnings of P1,500,000 in 2020. The company needs P2,500,000 for…
A: Residual dividend policy the firm’s objectives is to meet its investment needs and mostly to…
Q: Assume you plan to retire in 34 years. If you invest $280.00 per month in the broad U.S. equity…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: On January 1, 2021, you are considering making an investment that will pay 3 annual payments of…
A: Present value is a current value of future sum of money of cash flows, given at specified rate of…
Q: Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: JAX, Inc. has been offered the opportunity of investing $177,604 now. The investment will earn 7%…
A: The present value is the amount of investment made by the company or individual in the current time,…
Q: Wealth simple is a company that offers investment opportunites. their website claims that from 2017…
A: Constant growth rate is 6% Lets assume that; Invested value(PV) is "x" and Future value(FV) is "3x"…
Q: For the year ending December 31, 2017, sales for Corporation Y were $67.81 billion. Beginning…
A: Present value is the worth of future amount in present time which is expected to be generated in…
Q: You expect to receive $16,500 at graduation in two years. You plan on investing it at 11 percent…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: 3. After studying the Financial Forecast and planning, go through the assumption date given below…
A: Discretionary financing is calculated by subtracting the total liabilities & equity of a company…
Q: Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021.…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: JenBritt Incorporated had a free cash flow (FCF) of $84 million in 2019. The firm projects FCF of…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Manalo Inc. had the following data for 2019 (in millions). The new CFO believes that the company…
A: GIVEN NWC and CCC up to the benchmark companies' level without affecting either sales or the costs…
Q: National Co., 65% owned by National Holdings Group, provides screening, diagnostic and therapeutic…
A: D0 = P 0.14 D1 = P 0.14(1.15) = P 0.161 D2 = P 0.14(1.15)^2 = P 0.185 D3 = P 0.14(1.15)^3 = P 0.213…
Q: You expect to receive $27,000 at graduation in two years. You plan on investing it at 9.5 percent…
A: Present value (PV) is $27,000. Future value (FV) is $162,000. Interest rate (r) is 9.5%.
Q: Stevens Textile Corporation’s 2019 financial statements are shown here. Stevens grew rapidly in 2019…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: During 2020, Dyrdek’s Skate Shop, Inc., had a cash flow to creditors of $55,000 and the cash flow to…
A: given information cash flow to creditors = $55,000 cash flow to stock holders = $60,000 firms net…
Q: Let’s walk through an example and compute your post-tax returns. Suppose $2 million of your…
A: EBIT stands for Earnings before interest and taxes which states the profitability of the business…
Q: on the next digit. Say s- 8678.4546 When you round it to the nearest hundredth digit, you get a8678.…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: For the year ending December 31, 2017, sales for Company Y were $62.91 billion. Beginning January 1,…
A: As per the given information: Sales for Company Y ending December 31,2017 - $62.91 billionAmount…
Q: JenBritt Incorporated had a free cash flow (FCF) of $80 million in 2019. The firm projects FCF of…
A:
Q: A high school student received an $8,000 student loan in 2022. He then paid off the loan with $8,500…
A: CPI show the the prices over the years and it is indicator of the inflation in the economy and…
Q: nnual report of 2019 which shows an EBITDA of P5,000,000 and a total liability of P15,550,000.…
A: Corporate valuation is a process of evaluating the worth of a company entity in the realm of…
Q: For the next fiscal year, you forecast net income of $48.300 and ending assets of $503.500. Your…
A: The debt-equity ratio helps to determine the amount of leverage in the company compared to the…
Q: Suppose that the value of an investment in the stock market has increased at an average compound…
A: Present value is the current worth of cash flows that are expected to occur in future. Future value…
Q: 1. Assume Hudson Co. has a target pretax income of $172,000 for 2020. What amount of sales (in…
A: Sales needed for target profit = (Fixed Costs + Target Profit) / Contribution margin ratio…
Q: Suppose your company wants to place an investment with a private equity firm with an amount of Php…
A: The present value of net adjusted cash flows generated over time by entering into a long-term…
Q: For the next fiscal year, you forecast net income of $49,000 and ending assets of $509,300. Your…
A: Equity ($) 299,600 Debt ($) 109,500 Debt-Equity ratio 0.3655
Q: JenBritt Incorporated had a free cash flow (FCF) of $72 million in 2019. The firm projects FCF of…
A: Value of operations are present value of free cash flows to the firm
Q: A 24-year-old December 2019 graduate has decided he wants the equivalent of $2,500,000 in January 1,…
A: The future value concept can be used for determining the future value of a present cash flow or…
Q: You are thinking of investing in Webster Inc. You have only the following information on the form at…
A: Solution:- Calculation of the Webster’s ROE for 2020 as follows under:-
Q: The following information is available concerning the PAPASA-KA Company's expected results in 2019…
A: Income statement- It shows total expenses and income earned for a period of time. Performance of an…
Q: You want to investment for retirement. You inherited $50,000 in April 2020. The Stock Market has…
A: An investor should wait for the stock market to go down 10% more because investment in the stock…
Q: CorpCo is a large manufacturing firm with many stockholders. The firm is considering investing…
A: Given:
You are thinking of investing in Nikki T's, Inc. You have only the following information on the firm at year-end 2021: net income is $310,000, total debt is $2.50 million, and debt ratio is 55 percent.
What is Nikki T's ROE for 2021? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Formula:
Return on equity = Net income / Total share holders equity
Division of net income with total share holders equity derives the Return on equity.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You are thinking of investing in Webster Inc. You have only the following information on the form at year-end 2020: net income = $85,000, total debt = $1 million, debt ratio = 70 percent. What is Webster’s ROE for 2020?If you invest $17,500 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 7 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value b. In 18 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value Future value Val HOME c. In 25 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 1 ARNE Inil STA Boll Com te doen Monta Panta BBELL Aaron Alfal amphenie dit ou Munimin is magna. Menin that dimin ilmais mmmmm ana multzal mmmmmA. Jug pays $9,500 for an investment that pays an annual dividend of $500. The investment has a face value of 15,000 payable on the maturity date. If Jug holds the investment until its maturity date in 2023 (3 years' times), what will be his holding return (%) on investment? What will be the annualized return on his investment? (Show your calculations) Use financial calculator where applicable
- If you invest $17,500 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 7 years at 8 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value b. In 18 years at 7 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value c. In 25 years at 6 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future value d. In 20 years at 6 percent (compounded semiannually)? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Future valueOn January 1, 2021, you are considering making an investment that will pay 3 annual payments of 12,000. The first payment is not expected until December 31, 2024. You are eager to earn 3%. What is the present value of the investment on January 1, 2021. What are the present values use in the equation.An investor is considering an investment that will pay $2,170 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. Required: a. How much should he pay today for the investment? b. How much should he pay if the investment returns are received at the beginning of each year? (For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. Present value of ordinary annuity b. Present value of annuity due
- If you invest $15,000 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 6 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. In 17 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. In 15 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) d. In 14 years at 8 percent (compounded semiannually)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)You expect to receive $27,000 at graduation in two years. You plan on investing it at 9.5 percent until you have $162,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You expect to receive $16,500 at graduation in two years. You plan on investing it at 11 percent until you have $88,000. How long will you wait from now? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
- You want to investment for retirement. You inherited $50,000 in April 2020. The Stock Market has lost 20% of its value from its high in 2019. Should you: A. Wait for the Stock Market to go down another 10 Percent? B. Invest the entire $50,000 now? C. Invest a small amount each month starting this month. Explain why you selected one of the strategies above.Marty Neilson has just invested $130,000 in a restaurant that will provide him with an annual income of $18900. He expects to hold the investment for 8 years. What is the accounting rate of return (as a percentage)? ROUND YOUR ANSWER TO 2 DECIMAL PLACES. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.If Oriole Mooney invests $1,560.48 now and she will receive $12,000 at the end of 18 years, what annual rate of interest will Oriole earn on her investment? (Hint: Use Table 3.) (Round answer to O decimal places, e.g. 25%.) Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Annual rate of interest %