User Account

All Pages

Average interest rate faced by the companies

Assignment Help Basic Computer Science
Reference no: EM131739362

Calculate the return on assets and return on equity for the following companies. What appears to be the average interest rate faced by the companies? As a broad generalization, which companies appear to be effectively utilizing debt to improve financial performance?    

Net Income   Interest Expense*   Preferred Dividends   Average Assets   Average Equity

Alejando Corp. $120,000   $10,000   $0   $1,100,000   $1,000,000

Ling Corp. $100,000   $80,000   $20,000   $1,900,000   $1,100,000

Beaufort Corp. $700,000   $200,000   $15,000   $4,000,000   $2,000,000

Robinson Corp. $300,000   $200,000   $100,000   $6,000,000   $4,000,000

*Note: Many analysts use the "after tax" cost of interest (i.e., $1 of interest only costs $0.75 if a company faces a 25% tax rate) in calculating the return on assets. The idea is to determine how much higher income would be without the interest impact. For purposes of this problem you may simply use the interest expense shown.

Reference no: EM131739362

Questions Cloud

What caused declines in company performance : What caused declines in company performance? Are there plans in place to make changes or innovate based on reasons for declines?
Parents financial contribution for child-care benefits : What do you think about Google’s policy to increase parents’ financial contribution for child-care benefits?
Which of the given defines persuasion : Dwayne wants to adapt his sales message to his target audience. What question is his audience likely to ask while reading his message?
Identify an athlete who is portrayed in the popular media : Identify an athlete who is portrayed in the popular media (on a television series, news program, sporting event, or movie).
Average interest rate faced by the companies : Calculate the return on assets and return on equity for the following companies. What appears to be the average interest rate faced by the companies?
Existing policy and the proposed policy : Compute the days sales outstanding (DSO) under the existing policy and the proposed policy.
Loyal starbucks consumer : If you were a loyal Starbucks consumer it would be more than likely you would pay premium price for coffee.
Construct a cash budget for february and march : At the beginning of February, VLC expects to have $4,000 in cash, which is $1,000 greater than its target cash balance. Using the information provided
Estimate the value of the entire firm : Estimate the value of the equity in the firm and the value per share. Are Lockheed shares selling close to their fundamental value?

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Write a menu-driven multiform inventory program

Write a menu-driven multiform inventory program for a bookstore with data saved in a text file. Each record of the text file should consist of 5 fields-title, author, category (fiction or nonfiction), wholesale price, and number in stock.

  Brics and mitsk project

This project introduces the Brics and Mitsk countries and integrates the concepts presented in Weeks 1-4. It also provides a common foundation for future.

  Describe the average cost for finding the median

Write an equation to describe the average cost for finding the ith-smallest value in an array. This will be a function of both n and i, T(n, i).

  What inheritance relationships would you establish

What inheritance relationships would you establish among the following classes? · Student · Professor · TeachingAssistant · Employee · Secretary · DepartmentChair · Janitor · SeminarSpeaker · Person · Course ·Seminar · Lecture · ComputerLab

  File handling and applications

Design the logic for a program, using pseudocode, that merges the files for summer and winter programs to create a list of the first and last names.

  Whether there are multiple definitions of an environment var

Your version of unsetenv() should check to see whether there are multiple definitions of an environment variable, and remove them all (which is what the glibc version of unsetenv() does).

  Write routines for binary trees that count number of nodes

Write routines for binary trees that count the number of nodes

  Write the equations of motion governing this system

Find the transfer function between the control input u and the output y.

  Create a florida state information system

Create and use a Microsoft Access Database from which the program will retrieve the city information. Include 1 table with 5 fields per row, and 10 rows of data (cities).

  Develop a class implementation for the source-sink

Develop a class implementation for the source-sink shortest-paths problem in Euclidean graphs that is based on the bidirectional search described in Exercise 21.35.

  Computer network from hackers

State three ways in which a company can protect its computer network from hackers

  Difference in mean cpu time required for the two computers

Do the data provide sufficient evidence to indicate a difference in mean CPU times required for the two computers to complete a job? Test using α=.05. Give bounds for the associated p-value.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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