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tatiyna
4 years ago
14

Consider this simplified balance sheet for geomorph trading: current assets $ 180 current liabilities $ 100 long-term assets 580

long-term debt 240 other liabilities 150 equity 270 $ 760 $ 760
a. what is the company's debt-equity ratio? (round your answer to 2 decimal places.) debt-equity ratio
b. what is the ratio of long-term debt to total long-term capital? (round your answer to 2 decimal places.) long-term debt ratio
c. what is its net working capital? net working capital $
d. what is its current ratio? (round your answer to 2 decimal places.) current ratio
Business
1 answer:
Nikolay [14]4 years ago
4 0

a. Debt to equity ratio = Total debt / total equity

Total debt (other than current) = 240 + 150= 390

Total equity = 270

Debt to equity = 390/270 = 1.44

b. Long term debt = 240

Equity (long term) =270

Long term capital = 240 + 270 = 510

Long term debt to long term capital = 240/510 = 0.4706 = 47.06%

c. Working capital = current assets - current liabilities = 180-100 = $80

d. Current ratio = Current assets/ current liabilities = 180/100 = 1.8

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Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10
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It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.

<h3>How to calculate the expected rates of return</h3>

E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%

E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%

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The standard deviation will be calculated thus:

Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2

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Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2

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Learn more about rate of return on:

brainly.com/question/25821437

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