Answer:
Note: after an online research I found the questions. Comparing the debt ratios and analyze the causes of change.
Explanation:
Athenia’s debt ratio in 2018 is 50 % ( 50/100)
Athenia ‘s debt raiot in 2023 is 45.8% ( 55/120)
During this period, Economy of Athenia has increased larger than the debt. Hence, debt to GDP ratio has declined.
thus, the ratios changed because the economy grew a higher than the national debt.
Answer: See explanation
Explanation:
The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:
= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate
= 2.00/[20.00 × (1 - 4.5%)] + 4.2%
= 2.00 /[20.00 × (1 - 0.045)] + 0.042
= 2.00 / (20.00 × 0.955) + 0.042
= (2.00/19.10) + 0.042
= 0.104712 + 0.042
= 0.146712
New cost of equity = 14.67%
You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%
We have
that
Cost
total-------------------------$10 coupon+$30.25=$40.25
<span>ice
cream costs $1.50*2</span>=
-$3
<span>admission
cost $18*2</span>= -$36
<span>soda
cost $X*1</span>=
-$X
$40.25=$3+$36+$X
$X= $ 1.25
a
soda costs at the amusement park $ <span>1.25</span>
Answer:
2.41%
Explanation:
The difference between the two firms' ROEs is shown below:-
Particulars Firm HD Firm LD
Assets $200 Debt ratio 50% Debt ratio 30%
EBIT $40 Interest rate 12% Interest rate 10%
Tax rate 35%
Debt $100 $60
Interest $12 $6
($100 × 12%) ($60 × 10%)
Taxable income $28 $36
($40- $12) ($40 - $6)
Net income $18.2 $22.1
$28 × (1 - 0.35) $36 × (1 - 0.35)
Equity $100 $140
($200 - $100) ($200 - $60)
ROE 18.2% 15.79%
($18.2 ÷ $100) ($22.1 ÷ $140)
Taxable income = EBIT - Interest
Net income = Income - Taxable income
Equity = Assets - Debt
ROE = Net income ÷ Equity
Difference in ROE = ROE Firm HD - ROE Firm LD
= 18.2% - 15.79%
= 2.41%
So, for computing the difference between the two firms' ROEs we simply deduct the ROE firm LD from ROE firm HD.
Answer:
Projects will be run by the functional organization and project managers expedite change control.
Explanation:
A project management office or PMO is a department within an organisation that is tasked with maintaining the standard of project management. They also make sure there is economies of repitition in project execution (ensure success of projects is replicated).
In the given scenario if project managers report to the head of a PMO it means that the project management team is independent of the functional organisation.
So the statement - Projects will be run by the functional organization and project managers expedite change control.
Is false.
