Solution-How much of the assets are financed with debt

How much of the assets are financed with debt

Assignment Help Accounting Basics

Reference no: EM132572584

Question 1: ABC. reported a debt to equity ratio of 1.4 times at the end of 2018. If the firm's total assets at year-end were $19.2 million, how much of their assets are financed with debt and how much with equity?

Option 1: Total debt = $7.2m; Total equity = $12m.

Option 2: Total debt = $11.2m; Total equity = $8m.

Option 3: Total debt = $8m; Total equity = $11.2m.

Option 4: Total debt = $12m; Total equity = $7.2m.

Reference no: EM132572584

Questions Cloud

Noncurrent assets and related liabilities : Class, access the balance sheet of a publicly traded company, and list what items of assets are reported in the property, plant, and equipment section

Find what is the weighted average cost of capital for : The cost of common equity (in the form of retained earnings) is 14 %. Assume that corporate tax rate is 30%, what is the weighted average cost of capital for?

Mncs global supply chain in light of the coronavirus crisis : Discusses a MNC's global supply chain in light of the coronavirus crisis. discuss their efforts to "fix" their global supply chain

What is the project''s economic value added : Define agency problem in the context of company owners employing professional managers to run the company. Identify and explain TWO (2) financial plans

How much of the assets are financed with debt : If the firm's total assets at year-end were $19.2 million, how much of their assets are financed with debt and how much with equity?

What is the value of the option to wait : ALC is considering a project that has an initial cost of $1,972. The project's cash flows critically depend on whether a competitor

What recommendations would suggest to the fasb : What recommendations would you suggest to the FASB for further improving the accounting and auditing guidance in the area of vendor rebates?

Identify the major stakeholders in your organization : Analyze top-management structure, investigate and enumerate the code of ethics and explain the ethical stance of all stakeholders involved in the organization

How much was smith net income : The change in stockholders' equity for 2016 was due to net income and dividends. If dividends were $70,000, how much was Smith's net income for 2016?

User Account

All Pages

How much of the assets are financed with debt

Reference no: EM132572584

Reference no: EM132572584

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT