Instead of issuing new equity or borrowing from its bank

Assignment Help Financial Management
Reference no: EM131016082

A business wants to expand production. Instead of issuing new equity or borrowing from its bank, it decides to use the cash on its balance sheet in order to purchase additional equipment. Which of the following are unchanged as a result of this action?

total assets

leverage ratio

retained earnings of this year

all the above

Reference no: EM131016082

Questions Cloud

The amount you owe on your credit card : Which of the following would be an asset on your personal balance sheet? The amount you owe on your credit card. The difference between the amount you owe and the credit limit on your credit card
Expense in income statement : Which of the following is an expense in income statement.
Net profits after taxes to produce the numerator : Which of the following is NOT added back to Net Profits After Taxes to produce the numerator in Coverage Ratio?
How many years do these bonds have left until they matre : Backwater Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.5 percent. The current yield on these bonds is 7.85 percent. How many years do these bonds have left until they mature?
Instead of issuing new equity or borrowing from its bank : A business wants to expand production. Instead of issuing new equity or borrowing from its bank, it decides to use the cash on its balance sheet in order to purchase additional equipment. Which of the following are unchanged as a result of this actio..
Decided not to replace the depreciated equipment : Two identical firms, A and B, have the same revenue of $10 million and equal variable and fixed costs for the current year. At the start of the year, they both owned $20,000,000 in equipment which follows a depreciation schedule of 5% per year.   Ove..
In developing your export business plan : Select a product of which you will export to a foreign country. After your product is chosen, decide on a foreign country to which you will export. In developing your Export Business Plan,
A companys financial manager retains earnings : A company’s financial manager retains earnings:
Calculate the price of each bond : We observe the following two treasury securities with a par value of $1000 with semiannual coupon payments:  Calculate the price of each bond. What is the forward rate over the second 6-month period?

Reviews

Write a Review

Financial Management Questions & Answers

  Make semiannual payments-what is the current bond price

App Store Co. issued 15-year bonds one year ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.4 percent, what is the current bond price?

  The bond equivalent yield and the effective annual return

A Treasury bill with 136 days to maturity is quoted at 96.012. What is the bank discount yield, the bond equivalent yield, and the effective annual return? (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal ..

  Create a budget for the set design and construction project

Create a budget for the set design and construction project and why don't you need to take into account fringe benefit costs for the workers?

  Explain inappropriate tool for looking at market risk

This will take a little research on the Internet. Why may the bell curve be an inappropriate tool for looking at market risk? Find out what Mandelbrot (The Mis Behvior of Markets) and Taleb (The Black Swan) have to say.

  Inventory driven costs

ABC analysis, standardisation and variety reduction, Inventory Driven Costs, EDI works, Just in Time, dependent and independent demand

  Trend or force in each of specified microenvironments

Identify one trend or force in each of the specified microenvironments (the company, suppliers, marketing intermediaries, competitors, publics, and customers) and describe how it would affect 'your' company.

  What is the projects average accounting return

You’re trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12.9 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected..

  What is the approximate price of the leyda bond

Assume that Leyda Inc. has an outstanding bond with a 6.5% annual coupon, exactly 10 years to maturity, a par value of $1000 and a yield of 5%. The bond is convertible into 100 shares of Leyda stock, which is currently priced at $10.25 per share. Wha..

  The expected price of the stock at the end of year

Unlimited Corp. just paid a $.50 dividend per share and plans to double the dividend each of the next 2 years, and then dividends will grow 5% for the foreseeable future. If r is 10%, what is the expected price of the stock at the end of this year?

  Treasury issue-previous days asked price in dollars

Locate the Treasury issue in Figure 7.4 maturing in November 2028. Assume a par value of $10,000. What is its coupon rate? What is its bid price in dollars? What was the previous day’s asked price in dollars?

  Dupont and roe

A firm has a profit margin of 7.5% and an equity multiplier of 2.7. Its sales are $460 million, and it has total assets of $230 million. What is its ROE?

  What will the stock price be in three years

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.70 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 15 percent on the company's stock. What ..

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