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2 years ago

Which of the following companies has the lowest degree of leverage?

Business

1 answer:

LiRa [457]2 years ago

4 0

The firm with a 20% Debt and 80% Equity has the lowest degree of leverage.

<h3>What is a degree of leverage?</h3>

This means how much a firm operating income changes in response to a change in sales.

Because the Firm C has a low debt, this means its has the lowest degree of leverage when compared to others.

Therefore, the Option C is correct.

Missing options "90% Debt, 10% Equity

30% Debt, 70% Equity

20% Debt, 80% Equity

50% Debt, 50% Equity"

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The expected return on Natter Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and

AysviL [449]

Answer:

d. The stock price is expected to be $54 a share one year from now.

Explanation:

Using dividend discount model(DDM), find next year's dividend;

P0 = D1/ (r-g)

50 = D1/(0.14-0.08)

50 = D1/ 0.06

Multiply both sides by 0.06 to solve for D1;

50 *0.06 = D1

3 = D1

Next, year's dividend is $3

Dividend yield = D1/P0;

= 3/ 50 = 0.06 or 6% hence choices A& B are incorrect.

Next year's price; P1 = P0(1+g)

P1 = 50(1.08) = $54 hence choice D is correct

7 0

3 years ago

The following information was reported by Young's Air Cargo Service for 2017: Net fixed assets (beginning of year) $ 1,860,000 N

Degger [83]

Answer:

1.56

Explanation:

Data provided in the question:

Net fixed assets (beginning of year) = $1,860,000

Net fixed assets (end of year) = $2,280,000

Net operating revenues for the year = $3,230,000

Net income for the year = $1,600,000

Now,

company's fixed asset turnover ratio for the year

= Net operating revenues ÷ Average total assets

Also,

Average total assets

= [Net fixed assets (beginning of year) + Net fixed assets (end of year) ] ÷ 2

= [ $1,860,000 + $2,280,000 ] ÷ 2

= $2,070,000

Therefore,

Company's fixed asset turnover ratio for the year

= $3,230,000 ÷ $2,070,000

= 1.56

3 0

3 years ago

If you find yourself in a situation that you think might be escalating, what should you avoid doing?

Anuta_ua [19.1K]

Hi there! The answer is C.

If you find yourself in a situation that you think might be escalation, you should avoid letting people know their issue is not part of your job. When telling people their concerns are not part of your job, it makes the chance of escalation rise.

You could try using options A, B and D in order to keep the involved people as content as possible.

5 0

3 years ago

Read 2 more answers

1. Financial institutions in the U.S. economy Suppose Hubert would like to use $10,000 of his savings to make a financial invest

siniylev [52]

Answer:

c and e

Explanation:

4 0

2 years ago

A corporation entered into a contract with an owner of land for the transfer of land at a price of $500,000 in sixty days. The c

Zielflug [23.3K]

Answer:

Yes, because the corporation remains liable to the owner under the contract

Explanation:

The above answer is true because in this case, there is no limit to the assignment of the contractual rights between the two parties, hence this assignment of a contract would be treated as both an assignment of rights and a delegation of duties.

Therefore, while the corporation in this case has delegated its duties and assigned its rights under the contract to the developer by assigning the contract to the developer, the corporation is still considered to be liable to the owner for payment of the purchase price.

And given the fact that the developer is not as creditworthy as the corporation, and thus there is a greater chance that the developer will be unable to pay the purchase price, the owner has the rights under the contract arrangement to contractually compel the corporation to do so.

4 0

2 years ago