Return on its assets if its expected return on debt

Assignment Help Financial Management
Reference no: EM13927646

Calculate the firm's expected return on its assets if its expected return on debt is 10.50%, their expected return on equity is 22.50% and its WACC is 12%.

Reference no: EM13927646

Questions Cloud

Computed all of the liquidity ratios for a company : You have computed all of the liquidity ratios for a company, and each of them appears to be close to or better than the industry averages. What other information would you want before you made a final assessment of the company's short-term debt payin..
What are the benefits of ratio analysis : What are the benefits of ratio analysis? What are the limitations of ratio analysis? What can be done to minimize the limitations on ratio analysis? Explain.
What is the expected growth rate in dividends for firm : What is the expected growth rate in dividends for a firm in which shareholders require a 15% rate of return and the dividend yield is 7%?
Calculate the firms expected return : Calculate the firm's expected return on its assets if its expected return on debt is 10.50%, their expected return on equity is 22.50% and its WACC is 12%.
Return on its assets if its expected return on debt : Calculate the firm's expected return on its assets if its expected return on debt is 10.50%, their expected return on equity is 22.50% and its WACC is 12%.
The required rate of return for equity investors : What would you estimate to be the required rate of return for equity investors if a stock sells for $60 and will pay $7.20 in dividend that is expected to grow at a constant rate of 4%?
How much money did val make : Val believes the price of ABS is too high at $35/share. She shorts 100 shares. A week later, when she covers her short position, the price is $32/share. How much money did Val make?
Element of budgeted financial requirements : Which of the following is an element of budgeted financial requirements that is not included in budgeted expenses?
Collection of accounts receivable and developing budgets : The controller in a hospital is usually responsible for which of the following activities (choose all that apply): A. Collection of accounts receivable B. Developing budgets C. Filing Medicare cost reports D. Arranging hospital loans

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss the particular interest rate risk each bank faces

Bank A has $100 million of mortgages with an adjustable rate of HIBOR + 2%. These assets are financed with $100 million of fixed-rate deposits costing 5%. Bank B has $100 million investment of fixed-income notes with a fixed rate of 7%, which are fin..

  What did these bonds sell for when they were issued

Seven years ago XYZ International issued some 31-year zero-coupon bonds that were priced with a market's required yield to maturity of 12 percent and a par value of $1,000. What did these bonds sell for when they were issued?

  Assume the company maintains its current operating capacity

Lloyd and Harry Limo Service, Co. is currently operating at 92% of fixed asset capacity. Fixed assets on the balance sheet are $593,000. Current sales are $640,000, and are projected to grow to $792,000. How many in new fixed assets are required to s..

  The friendly national bank holds 50 million in reserves at

the friendly national bank holds 50 million in reserves at its federal reserve district bank. the required reserves

  Which of the following classifications of securities had

1 the practice of not putting all of your eggs in one basket is an illustration of .a varianceb diversificationc

  Calculate maximum mortgage amounts for conventional insured

You would like a fixed-rate, constant-payment 25-year mortgage. You are a VA and are eligible for a VA guaranteed mortgage, however you have used your VA guarantee benefits. Calculate the maximum mortgage amounts for conventional insured and FHA. Do ..

  What is the effective annual rate on this loan

You want to buy a new sports coupe for $73,900, and the finance office at the dealership has quoted you a loan with an APR of 6.3 percent for 72 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan..

  Difference between systematic and non-systematic risk

Assignment: Financial Management, explain difference between systematic and non-systematic risk

  What is capital intensity ratio

ABC had assets of $15 million last year; sales were $18 million; liabilities plus accruals that increased spontaneously with sales was 8% of assets; net income was $275,000 of which $120,000 was paid out in the form of dividends. What is ABC's capita..

  Key objective of corporate financial management

Explain the key objective of corporate financial management and why this might not be the same as maximising accounting profit and describe the principal characteristics of primary and secondary capital markets.

  Considered observation-reported to independent ouditors

Two confidential reports were found available to the public press after controls over confidentiality were found to be working as planned with compensating controls. These events revealed information that would not result in a significant loss to the..

  Which trade discount series gives the better deal

The list price of a car is $8760. It is available at either a 10/20/5 or a 35/30 trade discount series. Which trade discount series gives the better deal? By how much?

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