Company return to equity

Assignment Help Finance Basics
Reference no: EM131238302

Return to Equity

Pacific Packaging's ROE last year was only 3%; but its management has developed a new operating plan that calls for a debt-to-capital ratio of 40%, which will result in annual interest charges of $250,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $535,000 on sales of $5,000,000, and it expects to have a total assets turnover ratio of 3.6. Under these conditions, the tax rate will be 40%. If the changes are made, what will be the company's return to equity? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131238302

Questions Cloud

What accounts for native people using different approaches : At this point in the course we've learned about various forms of "quiet" and "noisy" resistance. What accounts for Native people using different approaches regarding their interaction with Europeans and/or Americans? Which approach do you think w..
Give an example of waveform of sampling pulse : Give an example of waveform of sampling pulse. What are the parameters of IC LF 398? What is resolution of a DAC? What is accuracy of a DAC? Explain what is linearity of a DAC. What is settling time of a DAC? Name some of the counter applications.
What interest rate would the investment have : What interest rate would the investment have to yield in order for Stanley's brother to deliver on his promise? (Answer needs to be stated as a decimal. For example: .1192)
Name some of the schmitt trigger applications : Name some of the Schmitt trigger applications. What is hysteresis of a Schmitt Trigger? What are the available packages of Digital ICs? How to identify a digital IC? What is Charge Coupled Device (CCD)? Name some of its advantages.
Company return to equity : If the changes are made, what will be the company's return to equity? Do not round intermediate calculations. Round your answer to two decimal places.
Evaluate and incorporate emerging relevant technologies : Evaluate and incorporate emerging relevant technologies applicable to the Business environment and Demonstrate ethical behavior in regard to information and information technology.
Will this system meet the requirements : The ADC has a reference voltage of 5 V. TheLSB of the ADC is to be 0.4° or smaller. Will this system meet the requirements?
Analyze the concepts in nursing care and ethics : Consider the Concept Map Scenario from your readings about the patient who did not want to be clean -  identify the ethical issues, analyze the concepts in nursing care and ethics and suggest how to solve the problem.
Determine the irr for project : (a) If the required return is 16 percent, what is the NPV for this project? (b) Determine the IRR for this project

Reviews

Write a Review

Finance Basics Questions & Answers

  Suppose the exchange rate between us dollars and swiss

suppose the exchange rate between u.s. dollars and swiss francs is sf 1.41 1.00 and the exchange rate between the u.s.

  A corporate bond pays 85 percent interest how much would a

a corporate bond pays 8.5 percent interest. how much would a municipal bond have to pay to be equivalent to this on an

  The relative costs of different sources of capital

What might we expect to see in practice in the relative costs of different sources of capital?

  Find the operating breakeven point and total operating costs

Barry Carter is planning opening a music store. He wants to estimate the number of CDs he must sell to break even. The CDs will be sold for $13.98 each,

  Describe the following project breakeven and profitability

what is capital budgeting? why are capital budgeting decisions so important to businesses?what is the purpose of

  The company just paid a dividend of 080 per share what is

cell-talk is a rapidly growing firm. it plans to increase dividends by 25 percent for each of the next three years and

  Capital asset pricing model-kellogg common equity

Using the data and results from the previous questions, find the expected return on Kellogg common equity according to the Capital Asset Pricing Model (CAPM).

  Explain how the appreciation of the australian dollar

Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security.

  What is the value of the missing cash flow

The present value of the following cash flow stream is $6,453 when discounted at 10 percent annually. What is the value of the missing cash flow?

  Budget allocation

Budget allocation - calculate the end values at the end of the respective periods.

  Explain why working capital management

Provide at least two examples of organizations that have good working capital management policies, and two examples of organizations with poor working capital management policies. Be sure to explain why the policies of your selected organizations ..

  You are the practice manager for a four-physician office

you are the practice manager for a four-physician office. you arrive on monday morning tonbspfind the entire office

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