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Virty [35]
3 years ago
15

Beranek Corp has $695,000 of assets (which equal total invested capital), and it uses no debt - it is financed only with common

equity. The new CFO wants to employ enough debt to raise the total debt to total capital ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?
Business
1 answer:
lesya692 [45]3 years ago
3 0

Answer:

$278,000

Explanation:

Data provided:

Total invested capital or assets = $695,000

Total debt to total capital ratio = 40%

now,

\frac{\textup{Total debt}}{\textup{Total capital}} = \frac{\textup{40}}{\textup{100}}

or

Total debt = 0.4 × Total capital

or

Total debt = 0.4 × $695,000

or

Total debt = $278,000

Hence,

The firm must borrow $278,000 to achieve the desired ratio

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Explanation:

The consumer won't want to buy cassettes because most music players are cd players if not even that. Plastic, time, money, and labor would be wasted.

8 0
3 years ago
When a company prepares financial statements using standard costing, which items are reported at standard cost
Dmitrij [34]

Answer: Inventories and cost of goods sold.

Explanation:

Standard costing is used in accounting and it simply has to do with the substitution of the cost that's expected for a product with an actual cost when preparing financial statements.

The difference that's then between the actual costs and expected costs are then recorded as variance. It should also be noted that when a company prepares financial statements using standard costing, the items that are reported at standard cost will be Inventories and the cost of goods sold.

7 0
2 years ago
Moses and the hebrews believed that the god given laws that defined a human relationship with other humans
Gnoma [55]

Answer:

true  

Explanation:

What are the ancient Hebrews laws of God called?

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8 0
3 years ago
Durable goods $3,000 Services 6,000 Business purchases of capital goods 400 Fixed investment 850 Exports 600 Imports 800 Nondura
ASHA 777 [7]

Answer:

$9,700

Explanation:

The computation of the consumption is shown below;

= Durable goods + Services + Non-durable goods

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= $9,700  

We simply added the durable goods, services and the non-durable goods so that the consumption could be come

Hence, the consumption is $9,700

Therefore the same is to be considered

6 0
3 years ago
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WARRIOR [948]

Answer: Activities and opinions

 

Explanation:  

The activities and the inventory opinions is basically providing the various types of data or information that helps in explain about the sales operation, facilities related to the production and also the product categorization.

The inventory of the activities and the opinions plays an important role in the management of an organization as it helps in providing the sufficient knowledge related to the production of the products in the market.

 According to the given question, the inventories of the activity is providing the vast information in concern with the product categories and the specific brand.

Therefore, Activities and opinions is the correct answer.

 

8 0
3 years ago
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