What is the equity multiplier

Assignment Help Finance Basics
Reference no: EM13275375

Rainbow company has a debt-equity ratio of 1.25. Return on assets is 7.5%, and total equity is $625,000. What is the equity multiplier? Return on equity? Net income?

Reference no: EM13275375

Questions Cloud

What is the required rate of return on alpha stock : The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Alpha's stock? 43.75% 10.04% 16.07% 21.88% 45.94%
Depict an ideal distillation curve : Draw an ideal distillation curve (temperature vs. milliliters of distillate) for a 50:50 mixture of two miscible liquids. How might one achieve such an ideal distillation
How much are you willing to pay to purchase stock : How much are you willing to pay to purchase stock in this company if your required rate of return is 14 percent? $15.36 $7.54 $8.80 $4.06 $31.20
Obtain the kinetic energy of this particle : A 0.500 kg particle moving along a straight line with a position vector given by r = (-2.00t2 - t) i(hat) + 5.00 j(hat), with r in meters, Obtain the kinetic energy of this particle
What is the equity multiplier : Rainbow company has a debt-equity ratio of 1.25. Return on assets is 7.5%, and total equity is $625,000. What is the equity multiplier? Return on equity? Net income?
Explain normal boiling points of cyclohexane and toluene : What are the normal boiling points of cyclohexane and toluene. Without looking up the actual value, which has a higher vapor pressure
Find the magnitude of the average net force that acts : When jumping straight down, you can be seriously injured if you land stiff-legged. One way to avoid injury is to bend your knees upon landing to reduce the force of the impact. A 83.2-kg man just before contact with the ground has a speed of 5.50 m/s..
What makes the emerging market carry trade so different : What makes the emerging market carry trade so different from traditional of uncovered interest arbitrage?
What is the length of the slope : A skier of mass 100 kg starts from rest and comes down a slope of constant angle 25 degrees with the horizon. What is the length of the slope

Reviews

Write a Review

Finance Basics Questions & Answers

  Decision making models and preferred stock

Given two projects, what are the decision models that you can use to make a decision as to which project you should accept? Which is the better?

  Explain which project should be selected

Project A and Project B will both cost $10,000. Project A returns $3,000 a year for 7 years. Project B returns $5,000 a year for 2 years. Using the payback period explain which project should be selected?

  What is the percentage total return

Suppose a stock had an initial price of $61 per share, paid a dividend of $1.40 per share during the year, and had an ending share price of $69.

  Determine the adjusted basis

Cassandra sells property for a sales valueof $150,000. In addition, Lana, the buyer, pays $5,000 in property taxes that had accrued during th year while property was still legally owned through Cassandra.

  Components of capital structure

Critically discuss and describe the three major components of the capital structure of enterprise.

  Objective type questions on current assets and liabilities

Objective type questions on current assets and liabilities and Which of the following statements is CORRECT

  Adjustable rate mortgages and rate on fixed rate mortgages

How does the initial rate on adjustable-rate mortgages different from the rate on fixed-rate mortgages? Explain your reasoning.

  Determine the firm weighted average cost of capital

Weekend Warriors, Inc. has 35% debt and 65% equity in its capital structure. The firm's estimated after tax cost of debt is 8% and its estimated cost of equity is 13%. Determine the firm's weighted average cost of capital.

  What is expected annual growth rate of the company

a company has stock which costs 42.00 per share and pays a dividend of 2.50 per share this year. the company's cost of equity is 8%. what is expected annual growth rate of the company's dividends?

  Fixed price contract and a target price contract

Assume someone tells you the only thing that matters is cost when deciding to provide a good or service internally or externally. That is, if you can do it cheaper internally, then that is how it should be done.

  Question based on personal finance

If creditors give you no credit for payments made during the billing period, which of the following may result in much of your personal financial information becoming part of the public record?

  What is the value per share of your firm stock

what is the value per share of your firm's stock? Round your answer to the nearest cent. Do not round your intermediate computations.

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