1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ganezh [65]
3 years ago
9

Beranek Corp has $720,000 of assets (which equal total invested capital), and it uses no debt—it is financed only with common eq

uity. 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:
lozanna [386]3 years ago
7 0

Answer:

firm must borrow $288000 to achieve the target debt ratio

Explanation:

given data

assets = $720,000

debt to total capital ratio = 40%

to find out

How much must the firm borrow to achieve the target debt ratio

solution

we get here debt here by Debt to Total capital ratio that is express as

Debt to Total capital ratio = Debt ÷ (  Debt + Equity  )   ....................1

put here value we get debt

0.40 = \frac{debt}{720000}

debt = $288000

so firm must borrow $288000 to achieve the target debt ratio

You might be interested in
Briefly describe how people's success and self confidence are related.​
sergey [27]

Confident people are more likely to take risks which leads to success and happiness.

4 0
3 years ago
Read 2 more answers
Slapshot Company makes ice hockey sticks and sold 1,890 sticks during the month of June at a total cost of $378,000. Each stick
Grace [21]

Answer:

<u>Slapshot Company</u>

<u>Income statement for the month of June</u>

Sales ( 1,890 x $360)                                   $680,400

Less Costs of Sales                                    ($378,000)

Gross Profit                                                  $302,400

Selling Costs :

Commissions                           $68,040

Other Selling Expense            $64,700

Administrative Expense          $53,800    ($186,540)

Net Income                                                   $115,860

Explanation:

The Income statement shows the <em>Profit</em> earned during the reporting period. This is determined as Gross Profit (Sales - Cost of Sales) minus the Operating Expenses.

6 0
3 years ago
How did the shift to steam power lead to the growth of cities?
MA_775_DIABLO [31]
The shift to steam power contributed to the growth of cities in many way. Firstly, it provides a continuous source of power to industries, which leads to high level of productivity. The availability of jobs in the industries makes the people in the rural areas to migrate to the cities in search of greener pastures. Steam power also created a new and efficient means of transportation which make it possible to move people and goods over long distances in record time.
7 0
3 years ago
3. Vegetables wilt or soften and their color intensifies as they
maks197457 [2]

[] Answer []

\boxed{Boil}

[] Explanation []

<u><em /></u>

<u><em>Vegetables wilt or soften and their color intensifies as they boil</em></u>.

      When boiling vegetables, the food will be sitting in a pot of water with the heat on low, medium, or hight. Once the water gets warmer, the water will cook the vegetables, causing them to get tender and softer. This will cause the vegetables color to get darker, and go limp.

       When boiling vegetables, the flavor will not intensify, just the color, and it's shape. The water will drain any tase from the vegetable, but it will cause the food to go limp and get softer. Boiling is a famous way to cook your favorite vegetables, although the taste is not highly favored among lots of people.

\boxed{[] \ Eclipsed \ []}

8 0
3 years ago
The stated purposed of NAFTA is to A. gain membership in the WTO. B. reduce the outsourcing of jobs to foreign countries. C. pha
jekas [21]

Answer:

C. phase out all trade and tariff barriers among​ Canada, Mexico, and the U.S

Explanation:

The North American Free Trade Agreement (NAFTA)

This agreement creates a bloc of trade for the region, Canada, Mexico and the US.

As state on "C" It result in the elimination or reduction of barriers to trade and investment between the countries.

It will be replaced in the following year by the United States–Mexico–Canada Agreement (USMCA)

But NAFTA will keep working until this new agreement is finished.

4 0
3 years ago
Other questions:
  • During a recession, the best strategy of the Federal Reserve is to buy bonds sell government bonds, to make low risk sound asset
    7·1 answer
  • Which of the following nations is not one of the three members of the North American Free Trade Agreement (NAFTA)?
    11·2 answers
  • Label the following hypothetical demand scenarios. Use the midpoint method.
    5·1 answer
  • Q2. Clare works at the front desk of DESB. Between 10:30am and 11:00am, 10 students stop by to ask questions on average. It usua
    8·1 answer
  • Ski resorts are interested in the mean age that children take their first ski and snowboard lessons. They need this information
    11·1 answer
  • Explain the reporting requirements for internal service funds and enterprise funds. internal service funds and enterprise funds
    13·1 answer
  • The following transactions occurred during March, the first month of operations for Quality Galleries, Inc. * Capital Stock was
    12·1 answer
  • The unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for ev
    13·1 answer
  • The Don't Bite Me Pest Control Company has 11,900 gallons of insecticide supplies on hand that cost $357,000; a bill from the ve
    8·1 answer
  • When evaluating special offer decisions, management should consider: (Check all that apply.) Multiple select question. historica
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!