Debt–total asset ratios

Assignment Help Financial Management
Reference no: EM131189257

Firm A and Firm B have debt–total asset ratios of 40 percent and 30 percent and returns on total assets of 9 percent and 14 percent, respectively. What is the return on equity for Firm A and Firm B? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Reference no: EM131189257

Questions Cloud

How might current changes in federal influence decisions : How might current changes in federal, state, and local policies influence decisions to be made? What questions might the board ask regarding feasibility of this proposal?
Even though most corporate bonds : Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon r..
Do you agree that society is intoxicated with technology : Are there any benefits or negative side effects of technology in business that have not been mentioned? -Discuss.
End inventory level and the inventory turnover ratio : Jasper Furnishings has $300 million in sales. The companyexpects that its sales will increase 12 percent this year.Jasper’s CFO uses a simple linear regression to forecast thecompany’s inventory level for a given level of projectedsales. what are you..
Debt–total asset ratios : Firm A and Firm B have debt–total asset ratios of 40 percent and 30 percent and returns on total assets of 9 percent and 14 percent, respectively. What is the return on equity for Firm A and Firm B?
Why may it be easier in performing an internal assessment : Why may it be easier in performing an internal assessment to develop a list of 80 strengths/weaknesses than to decide on the top 20 to use in formulating strategies?
What will the annual incremental cash flows for project : You have developed a new a new recreational tennis racket with tennis great Jimmy Connors. You have paid Jimmy Connors for his involvement in the project $250,000. The racket is state of the art and guaranteed to correct any backhand. What will the a..
Explain why you feel these strengths are important : Identify what you found to be the "strengths" you believe must be considered in developing a strategic plan. Identify three things from the articles that you think will be very important to consider when you participate in the discussion of a stra..
Create an engaging vocabulary game that utilizes : Create an engaging vocabulary game that utilizes five different teaching strategies for vocabulary development. These strategies should also address Common Core's three tiers of academic language.

Reviews

Write a Review

Financial Management Questions & Answers

  Future dividends will be increasing

Miller Brothers Hardware paid an annual dividend of $1.65 per share last month. Today, the company announced that future dividends will be increasing by 3.60 percent annually. If you require a 9.6 percent rate of return, how much are you willing to p..

  Based on effective interest rates

The First City Bank pays 6.6 percent interest, compounded annually, on time deposits. The Second City Bank pays 6.5 percent interest, compounded monthly. Based on effective interest rates, in which bank would you prefer to deposit your money?

  Continue to think about retirement in the future

As you continue to think about retirement in the future and as you apply the knowledge you have gained from this course, would the savvy use of financial logic involved in holding inventories of both stocks and bonds even if they change over time be ..

  Should you have any concerns about casting your vote

You serve as an outside director on the board of the All-at-Once Corporation. During a board meeting, the president of All-at-Once makes a fifteen minute presentation on the benefits and detriments of merging All-at-Once with Take-Your-Time, Inc. Sho..

  Expected dividend and earnings growth rate

What price would an investor requiring a 7% return pay for a stock which just declared a dividend of $5.00 if the expected dividend and earnings growth rate was estimated at 0%? Please show work.

  What is change in price the bond will experience in dollars

A 6.05 percent coupon bond with fifteen years left to maturity is priced to offer a 7.1 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollar..

  Simple interest on its savings account balances

First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually. If you made a $73,000 deposit in each bank, how much more money would you earn from your Second City..

  The purpose of the weighted average cost of capital

The purpose of the weighted average cost of capital (WACC) is to discount the cash flows from:

  Ques 1i what are the factors affecting the capital

ques 1.i what are the factors affecting the capital structure of the company?ii the company raised preference share

  Find the future value of a ordinary annuity

Find the future value of a ordinary annuity, $3,000 a year for five years at 8%. I need to see what the N is, the I/Y is, the PV is, the PMT is, and the FV is. Also can you please show me your work so I understand where the numbers come from?

  Higher operating leverage

In its 2009 annual report, The Coca-Cola Company reported sales of $30.99 billion for fiscal year 2009 and $31.94 billion for fiscal year 2008. The company also reported operating income (roughly equivalent to EBIT) of $8.23 billion in 2009 and $8.45..

  Show the calculation for given problem

Its annual sales are $5.13 million, its average tax rate is 30%, and its net profit margin on sales is 5%. What is its TIE ratio?- show the calculation for this problem?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd