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noname [10]
2 years ago
8

A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 10%. Its overall cost of capital is14%. What is its cost of equit

y if there are no taxes?
Business
1 answer:
Anon25 [30]2 years ago
6 0

The formula for calculating the debt-to-equity ratio is to take a company's total liabilities and divide them by its total shareholders' equity. A good debt-to-equity ratio is generally below 2.0 for most companies and industries.

<h3>What type of ratio is debt-to-equity?</h3><h3>leverage</h3>

The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is calculated by dividing a company's total liabilities by its shareholder equity.

<h3>What does a debt-to-equity ratio of 2 mean? </h3>

A debt-to-equity ratio of 2 means a company relies twice as much on debt to drive growth than it does on equity, and that creditors, therefore, own two-thirds of the company's assets.

Learn more about debt-to-equity here:

<h3>brainly.com/question/11556132</h3><h3 /><h3>#SPJ4</h3>
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The Center is an experienced home appliance dealer. The Center also offers a number of services together with the home appliance
Airida [17]

Answer:

The amount that should be allocated to the oven is $771.12.

The amount that should be allocated to the installation services is $102.75.

The amount that should be allocated to the maintenance services is $166.13.

Explanation:

Total price=Standard price   oven  +Standard price  Installation  +Standard price  

Maintenance ​  

=$803+$107+$173

=$1,083

Price allocated=Stand alone price of oven   / Total price  ×Price paid by customer

=  $803 / $1,083  ×$1,040

=$771.12

Price allocated=  

Stand alone price of installation service/ Total price

​  ×Price paid by customer

=  

$107 / $1,083   ×$1,040

=$102.75

​

Price allocated=   Stand alone price of maintenance service  /Total price

​  ×Price paid by customer

=   $173 /$1,083  ×$1,040

=$166.13

​

6 0
3 years ago
Scientist estimate that sea level has risen about what over the past 100 years
pantera1 [17]
New research indicates that the ocean could rise in the next 100 years to a meter higher than the current sea level -- which is three times higher than predictions from the UN's Intergovernmental Panel on Climate Change,
4 0
3 years ago
Pal Corp.'s 2004 dividend income included only part of the dividend received from its Ima Corp. investment. The balance of the d
VashaNatasha [74]

Answer:

Fair Value method, and only a portion of Ima's 2004 dividends represent earnings after Pal's acquisition.

Explanation:

The part of the dividend that reduce the carrying value of the investment can be said to be a liquidating dividend. Liquidating dividend is said to have occurred when the payment made by the investee is higher than the income that was earned in the course of the period in which the shares of the investee was owned by the investor.

On the other hand, the cost method treats liquidating dividends as spend or reduction in the investment account and treats normal dividend as income. Hence it is impossible for the firm to use equity method.

This is because dividend are seen as a reduction in investment account under the equity method. This means that dividends received cannot be taken as income in this method, hence C and D are wrong.

7 0
3 years ago
Method A assumes simple interest over final fractional periods, while Method B assumes simple discount over final fractional per
Marina86 [1]

Answer:

The answer is "1.1"

Explanation:

In the case of a single Interest, the principal value is determined as follows:

\ I = Prt \\\ A = P + I\\A = P(1+rt) \\\\A = amount \\P= principle\\r = rate\\t= time

In case of discount:

D = Mrt \\P = M - D \\P = M(1-rt)\\\\Where,  D= discount \\M =\  Maturity  \ value \\

Let income amount = 100, time = 1.5 years, and rate =20 %.

Formula:

A = P(1+rt)  

A =P+I

by putting vale in the above formula we get the value that is = 76.92, thus method A will give 76.92  value.

If we calculate discount then the formula is:

P = M(1-rt)

M = 100  rate and time is same as above.

P = 100(1-0.2 \times 1.5) \\P = 100 \times \frac{70}{100} \\P = 70

Thus Method B will give the value that is 70  

calculating ratio value:

ratio = \frac{\ method\  A \ value} {\ method \ B \ value}\\\\\Rightarrow ratio = \frac{76.92}{70}\\\\\Rightarrow ratio = \frac{7692}{7000}\\\\\Rightarrow ratio = 1.098 \ \ \ \  or \ \ \ \  1.

4 0
3 years ago
I need help with this problem.
jeyben [28]
     its not a problem up there i don't see one nor the upload

 
8 0
3 years ago
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