Expected earnings for river cruises

Assignment Help Basic Computer Science
Reference no: EM131106694

River Cruises is all-equity-financed with 100,000 shares. It now proposes to issue $350,000 of debt at an interest rate of 10% and use the proceeds to repurchase 35,000 shares at $10 per share. Profits before interest are expected to be $135,000.

a. What is the ratio of price to expected earnings for River Cruises before it borrows the $350,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is the ratio after it borrows? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131106694

Questions Cloud

Indicate the addressing mode : 1)Assume 64 different op codes and 19-bit instruction word in a computer system. Two bits in the instruction are reserved to indicate the addressing mode.
Examine critical thinking inquiring and communication skills : In this discussion forum, you will examine your critical thinking, inquiring, and communication skills as they relate to the subject of physical education
What he had learned earlier about corporation accounting : Davison Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting.
Describe four characteristics of child-directed speech : Two basic approaches to object recognition are the parts-based approach and the image-based approach. Describe each of these approaches, providing one (1) example of each. How do these approaches explain object recognition? Provide two (2) support..
Expected earnings for river cruises : What is the ratio of price to expected earnings for River Cruises before it borrows the $350,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The yields of the five zero-coupon bonds : An investor is considering the purchase of zero coupon U.S. Treasury bonds. A 30-year zero coupon bond yielding 8% can be purchased today for $9.94.At the end of 30 years, the owner of the bond will receive $100.The yield of the bond is related to..
Describe the challenges with alternative work arrangements : Which motivation theory would you use to describe the challenges with alternative work arrangements (e.g., flex-time, compressed work week, and telecommuting) as discussed in the text? Do you believe the practice of providing alternative work arra..
Create an agenda to plan a business meeting : Review these two sample "Sample Meeting Agenda" "Making Meeting Agendas Useful" Create an agenda to plan a business meeting.
Assuming the availability of these probabilities : Reformulate this algorithm assuming the availability of these probabilities.

Reviews

Write a Review

 

Basic Computer Science Questions & Answers

  Load balanced environment, a client is reporting problems

Please check off all applications or tools you would use in your investigation based on your reply? Cluster Administrator ? PerfMon? Computer Management ? SQL Execution Plans? Debug Diagnostics ? SQL Server Configuration Manager? Directory Properties

  Software and design implementation in completion

Software and design implementation in completion of Phase 1 of the recipe management system, XYZZY management set up a focus group to evaluate the system. The group found that the current GUI design is confusing and that the insert functionality s..

  Find out how to configure an http server

Decide if such a feature is part of the protocol or part of an implementation, or is technically even permitted by the protocol. (Documentation for the apache HTTP server can be found at www.apache.org.)

  Identify performance bottlenecks in a particular system

Windows Experience Index, under Windows Vista/7, is a summary index designed to measure the overall performance of a system. You can use it to compare systems and identify performance bottlenecks in a particular system. Discuss its base score conc..

  Recognize three factors to consider in finding out the

q1. identify three factors to consider in determining the competitive value of information technology. justify the

  One-second delay between each toggle

Write a program to continuously turn all four green LEDs ON and OFF (toggle). There should be a one-second delay between each toggle.

  Describe how technical goals can be coupled with information

Describe how technical goals can be coupled with information assurance and security considerations in a network design project.

  Write down the vbscript code that employs a do until loop

question 1. write the vbscript code that uses a do until loop to display all of the integer values stored in the array

  Development of a new information system

Willowbrook School is a small private school that has retained your services as a systems analyst to assist in the development of a new information system for the school's administrative needs.

  Display the values of the si_fd and si_code fields

display the values of the si_fd and si_code fields of this structure.

  Recover the corresponding encryption key

1. Recover the corresponding encryption key knowing that the first ciphertext word corresponds to plaintext "Recall".

  Identify and outline the function of digital certificates

Explain the concepts of encrypting data and securing e-mail transmissions

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