What is the return on equity for firm a and firm b

Assignment Help Finance Basics
Reference no: EM13283310

Firm A and Firm B have debt-total asset ratios of 35 percent and 55 percent and returns on total assets of 9 percent and 7 percent, respectively.

What is the return on equity for Firm A and Firm B?

Reference no: EM13283310

Questions Cloud

What is the significance of fibre shape : What is the significance of fibre shape factor regarding its physical shape and other parameters
Exact manner as a male police officer : Analyze and explain whether a female officer should be expected to perform in the exact manner as a male police officer.
An investment strategy : What would your recommendations be to your clients? Please make sure to discuss how you would convince the young adult to invest.
What are the primary causes of workplace violence : What are the primary causes of workplace violence?  How can managers help prevent workplace violence?
What is the return on equity for firm a and firm b : What is the return on equity for Firm A and Firm B?
Sampling error usually decreases with increasing sample size : The sampling error usually decreases with increasing sample size. What are two quantitative nursing research studies related to your clinical area of interest? Compare and contrast the sampling process of each study.
What is the amount of the firm’s net fixed assets : The Le Bleu Company has a ratio of long-term debt to long-term debt plus equity of .35 and a current ratio of 1.25. Current liabilities are $950, sales are $5,780, profit margin is 9.4 percent, and ROE is 18.2 percent. What is the amount of the fi..
Issues check-cashing cards uses algorithm to create card : A company that issues check-cashing cards uses an algorithm to create card numbers. The algorithm adds the digits of a four-digit number, and then adds a fifth digit of 0 or 1 to make the sum of the digits even.
Consumption allowances actually increase by 10 percent : Assume that some of the data provided in problem 1 change next year. Specifi cally, government expenditures increase by 10 percent; gross private domestic investment declines by 10 percent; and imports of goods and services drop to $6 billion.

Reviews

Write a Review

Finance Basics Questions & Answers

  What amount of the payroll department costs

What amount of the payroll department costs will be allocated to the molding department?

  Making decision based on balance sheet

The proprietors of two businesses, L.L. Sams Corporation and Melinda Garcia Career Services, have sought business loans from you. To decide whether to make loans you have requested their balance sheets.

  Prepare a flexible manufacturing budget for relevant range

Prepare a flexible manufacturing budget for the relevant range value using 20,940 unit increments IN EXCEL.

  What is the npv for this project

If the shop's tax rate is 35 percent and its discount rate is 8 percent, what is the NPV for this project?

  What is the projected net present value of the new project

The company's cost of equity is 15.5 percent while the aftertax cost of debt for the firm is 6.1 percent. What is the projected net present value of the new project?

  What is the market value per share after the dividend

Verbal Communications, Inc., has 14,000 shares of stock outstanding with a par value of $1 per share and a market value of $32 per share. The firm just announced a 100 percent stock dividend. What is the market value per share after the dividend?

  What is the stock value per share

What is the stock's value per share? Round your answer to two decimal places.

  What is the value of the stock today

The next dividend for GTA2 corp will be $4 per share. Investors require a 16% return. Dividends of GTA2 increases by 6% every year. Based on this information what is the value of the stock today?

  Explaining strengthening basis benefits a short hedge

Describe why strengthening basis benefits a short hedge and hurts a long hedge.

  Find percent of the population registered to vote

If during an election there were 6372 listed voters & 3560 listed voters voted, what percentage of the listed voters actually cast a vote.

  Compute the variance and the standard deviation

Investment Forecasted Returns for Boom Economy Forecasted Returns for Stable Growth Economy Forecasted Returns for Stagnant Economy Forecasted Returns for Recession Economy Stock 23% 10% 7% -11% Corporate bond 10% 7% 5% 3% Government bond 9% 6% 4%..

  Determine costs of internal and external equity for firm

New common stock can be sold to net the company $11 per share. Determine the costs of internal and external equity for this firm.

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