How much long-term debt does the firm have

Assignment Help Finance Basics
Reference no: EM13299342

For the year ending June 30, 2008, the Austin Corporation has current assets of $ 275,000 and total assets of $ 900,000. It also has current liabilities of $ 150,000, equity of $ 200,000, and retained earnings of $ 100,000. The marginal tax rate for the firm is 30%. How much long-term debt does the firm have?

a) $ 250,000
b) $ 350,000
c) $ 315,000
d) $ 450,000

 

Reference no: EM13299342

Questions Cloud

Find importance of typical characteristics of money market : Given the economic role of the money market, concisely explain the importance of the typical characteristics of money market securities.
State what is the ph of a solution that is nh4cl : NH3 is a weak base (Kb = 1.8 × 10-5) and so the salt NH4Cl acts as a weak acid. What is the pH of a solution that is 0.049 M in NH4Cl
What were timber cash flows from operating activities : If it's marginal tax rate was 30%, what were Timber's cash flows from operating activities for 2010?
Explain gas above the top liquid is at an absolute pressure : The gas above the top liquid is at an absolute pressure of Pg. Furthermore, the densities and heights of liquid 1 and liquid 2 are P1 and P2 , and L1 and L2 , respectively. In terms of these given symbols, waht is the absolute pressure at the bott..
How much long-term debt does the firm have : The marginal tax rate for the firm is 30%. How much long-term debt does the firm have?
Compute the equivalent inductance : Inductors in parallel. Two inductors L1 = 1.34 H and L2 = 2.20 H are connected in parallel and separated by a large distance so that the magnetic field of one cannot affect the other. Calculate the equivalent inductance
Explain the mineral to obtain the oxides and cao and mgo : Calcium and Magnesium carbonates occur together in the mineral dolomite. Suppose you heat a sample of the mineral to obtain the oxides,CaO and MgO
Determine how many lamps are required for a flow : A membrane biological treatment plant effluent must be disinfected to what level prior for use as unrestricted recycled water. For a flow of 4 mgd and peak flow of 6 mgd, how many lamps are required
Explain calcium and magnesium carbonates : Calcium and Magnesium carbonates occur together in the mineral dolomite. Suppose you heat a sample of the mineral to obtain the oxides,CaO and MgO, and then treat the oxide sample with HCl.

Reviews

Write a Review

Finance Basics Questions & Answers

  Was it ethical to initially start the company showing

Was it ethical to initially start the company showing a very minor profit so future profits would appear to be phenomenal growth?

  What is the systems current book value

What is the system's current book value? If Largo sold the system for $110,000, how much recaptured depreciation would result?

  What is the cost of retained earnings

what is the cost of retained earnings; b. cost of new common stock? The rate of interest on the firm's long-term debt is 10 percent and the firm is in the 32 percent income tax bracket

  Expected return on the market portfolio

Suppose the yield on short-term government securities (perceived to be risk-free) is about 4%. What is the expected return on the market portfolio? What would be the expected return on a zero-beta stock?

  Is it a bargain if its selling at $76 a share

The Pancake Corporation recently paid a $3 dividend and is expected to grow at 5% forever. Investors generally require an expected return of at least 9% before they'll buy stocks similar to those of Pancake.

  Time is money-emily oster

Please give a written summarization on article "Time is Money" by Emily Oster. What is the take away of article?

  Determine the value of each bond

An investor has 2 bonds in his portfolio that have a face value of $1000 and pay a 10% yearly coupon. Bond L matures in 15 years, while bond S matures in oine year.

  What is the maximum amount the firm should pay

Which investment should be considered? (for any credit, show your work). Use a 9.5% discount rate. Hint: A discount rate gives you the clue that you should perform a present value analysis on each investment.

  What is the break-even point in units

Florida. Stan sells his cans for $8 a piece and they have a variable cost of $2.40 a piece. Stan's tax rate is currently 34%.

  Evaluate the gain or loss to the lender

The commission rate is 0.5%. The market interest rate is 5.0% and the short rebate rate is 3.0%. Evaluate the gain or loss to the lender.

  What is the firms total corporate value

Ryan Enterprises forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13.0%, and the FCFs are expected to continue growing at a 5.0% rate after Year 3.

  Explain computation of value of shares

Explain computation of value of shares and what will happen to the expected return if investors suddenly become less conservative and more willing to bear risk

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