User Account

All Pages

What is the maximum additional amount that sveva can borrow

Assignment Help Accounting Basics
Reference no: EM132029107

Question - On December 31, 2015, Sveva Inc. has total liabilities of $112,000 and total equity of $220,000. The company needs to raise additional funds through debt and equity. The company will issue 25,000 shares of common stock at $11.10 per share and in addition it intends to borrow as much as it can from Bank of Switzerville. Bank of Switzerville requires a maximum debt-to-asset ratio of 0.6.

What is the maximum additional amount that Sveva can borrow after the additional stock is issued?

a. $253,700

b. $332,330

c. $466,250

d. $634,250

Reference no: EM132029107

Questions Cloud

How much should she pay for her first estimated tax payment : Estimated tax was 8,000. How much should she pay for her first estimated tax payment on April 15
Review and evaluate the political commercials : Review and evaluate the political commercials in the Learning Resources and their influence on American political life.
Discuss about speech communication : What are two concepts that you can use discuss about speech communication that you can use as a Business admin major.
Describe kelleys effective followership : Describe Kelley's effective followership.Describe how a leader might utilize the Kelley model of followership to assess follower effectiveness.
What is the maximum additional amount that sveva can borrow : Bank of Switzerville requires a maximum debt-to-asset ratio of 0.6. What is the maximum additional amount that Sveva can borrow
Secure the various transportation systems : Is it possible to secure the various transportation systems in the U.S. such that they can be considered 'safe' from terrorism? Explain your answer.
Deciding on potential global markets : What factors should companies consider when deciding on potential global markets?
What is excess advance premium tax credit repayment amount : Betty received 2000 as advance payment of her premium tax credit. If repayment limitation is 750.00, what is excess advance premium tax credit repayment amount
Discusses three different types of returns : Discusses three different types of returns. Identify the item in the list below that is not one of those three types returns

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd