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scoray [572]
3 years ago
15

Bob's Warehouse has a pre-tax cost of debt of 8.4 percent and an unlevered cost of capital of 14.6 percent. The firm's tax rate

is 37 percent and the cost of equity is 18 percent. What is the firm's debt-equity ratio?
Business
1 answer:
Temka [501]3 years ago
7 0

Answer:

The firm's debt-equity ratio is 0.87

Explanation:

RE = 0.18 = 0.146 + (0.146 - 0.084)*D/E*(1 - 0.37)

0.18 -0.146 = 0.062*DE*0.63

0.034 = 0.03906*DE

D/E = 0.87

Therefore, The firm's debt-equity ratio is 0.87

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Over the past year, the current assets account on the common-size balance sheet of a firm has decreased, while the current liabi
Free_Kalibri [48]

Answer:

Decreased

Explanation:

Liquidity or current ratio =  Current Assets / Current liabilities

If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.

The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.

Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).

Remember that the current assets are the assets that are convertible to cash within next 12 months. Whereas current liabilities are the liabilities which we have to pay in cash within the next 12 months.

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3 years ago
When shopping for clothes and shoes, keep in mind the logo, team name, style or celebrity endorser question 1 options:
lawyer [7]
B. False. More real-world, relevant and important ideas to keep in mind when shopping for shoes and clothes are the associated quality of the manufacturer, which could be a brand name. Also, of utmost importance is the overall quality of the product with relation to its cost. The size of the item is also important. Do not buy an overpriced item, that does not fit properly and is made of cheap materials that quickly break.
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3 years ago
44. A barrier to entry is
Andreyy89

Answer:

the answer is E hope that helps you

6 0
3 years ago
Universal Containers (UC) is migrating from a legacy portal to a new Community. UC needs to stand up the new Community immediate
Juli2301 [7.4K]

Answer:

The answer for the Community template that the Community Cloud consultant should recommend is option c) Customers Account Portal

Explanation:

The Customer Account Portal template improves customer relationships and decreases service costs. The template provides features that make it easy for customers to see and pay invoices, update their account information, and search your knowledge base for answers.

The Customers Account Portal is the best option since Universal Containers (UC) is migrating from a legacy portal to a new Community and needs to stand up to the needs of the new Community immediately where users can ask questions and provide answers.

3 0
3 years ago
A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate
Lynna [10]

Answer:

$113,465

Explanation:

Calculation to determine difference in total dollars that will be paid to the lender under each loan

First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month

$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})

PMT = $804.62

Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month

$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})

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Now let determine the Total difference

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Total difference= $113,465

Therefore difference in total dollars that will be paid to the lender under each loan is $113,465

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3 years ago
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