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posledela
3 years ago
6

MC algo 3-13 Equity Multuiplier Use the following information to answer this question Windswept, Inc. 2017 Income Statement ($ i

n millions) $ 8.700 Net sales Cost of goods sold 7,250 350 Depreciation Earnings before interest and taxes Interest paid $ 1,100 83 $ 1,017 Taxable income 356 Taxes 661 Net income Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2017 2016 2017 2016 $ 1070 $ 1,212 Cash $ 140 120 Accounts payable Long-term debt Accounts rec. 800 720 980 1,213 1,510 1,535 Inventory Common stock 3,150 450 2,890 $2.450 $ 2,375 Retained earnings Total 700 Net fixed assets 3,200 3,640 $ 6,015 $5,650 5,650 6,015 Total liab. & equity Total assets What is the equity multiplier for 2017? a) 2.08 times b) 2.42 times c) 3.01 times d) 1,68 times e) 1,26 times
Business
1 answer:
Helga [31]3 years ago
5 0

Answer:

The answer is Option D. 1.68 times

Explanation:

The formula for equity multiplier is:

Equity Multiplier = Total assets ÷ Total stockholder's equity

In 2017:

Total stockholder's equity = Common stock + Retained earnings

Total stockholder's equity = $2890 + $700 = $3590

Total assets = $6,015

Now, putting these values in the above formula, we get,

Equity multiplier = $6,015 ÷ $3,590 = 1.68 times

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Blaser Corporation had $1,075,000 in invested assets, sales of $1,243,000, income from operations amounting to $216,000 and a de
lawyer [7]

Answer:

Rate of return is 20%

Explanation:

Rate of return is the actual return received on a investment. In this question Blaser Corporation invested $1,075,000 in asset and earned a income of $216,000. So the rate of return is as follow

Rate of return = Income received / Investment in Assets = $216,000 / $1,075,000 = 0.200 = 20%

6 0
3 years ago
Read 2 more answers
Last year, Hampton Corporation had sales of $1,855,000. The firm's costs of goods sold amounted to 70% of sales. Hampton also pa
jeka57 [31]

Answer:

Tax Liability = $74,550

Explanation:

Particular                                   Amount

Sales                                             $1,855,000

Less: COGS(70% of sales)           <u>$1,298,500</u>

Gross Profit                                   $556,500

Less: Operating expenses           <u>$225,000</u>

Operating profit                            $331,500

Add: Taxable dividend income    $40,000

Add: Capital gain                           $10,000

Less: Interest Expenses                <u>$26,500</u>

Net Taxable Income                      $355,000

Tax rate = $355,000 * 21%  

Tax Liability = $74,550

Note: 21% is the Tax rate approved by the Tax cuts and Job Acts of 2017.

3 0
3 years ago
To assess risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Check all tha
vaieri [72.5K]
I believe the answer is: 

- What can go wrong?
This question is asked to find out the potential risk that may occur after purchasing the product.

- What is the likely return?
This question is asked to find out potential benefit from consuming the product

-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk

</span>
4 0
3 years ago
Read 2 more answers
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 pe
katrin [286]

Answer:

2.9652%

Explanation:

to determine the cost of debt we must use the FMV of the bonds plus the YTM:

first bond:

FMV = 1.09 x $1,000 = $1,090 x 3,600 bonds = $3,924,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {17.5 + [(1000 - 1090)/16]} / [(1000 + 1090)/2] = (17.5 - 5.625) / 1045 = 1.136% x 2 = 2.27% annual

second bond:

FMV = 0.95 x $2,000 = $1,900 x 3,950 bonds = $7,505,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {59.4 + [(2000 - 1900)/42]} / [(2000 + 1900)/2] = (59.4 + 2.38) / 1950 = 3.168% x 2 = 6.34% annual

total debt = $3,924,000 + $7,505,000 = $11,429,000

weighted average after tax cost of debt:

{($3,924,000/$11,429,000 x 2.27%) + ($7,505,000/$11,429,000 x 6.34%)} x (1 - 0.40) = (0.779% + 4.163%) x 0.6 = 4.942% x 0.6 = 2.9652%

6 0
3 years ago
What are the four elements of the marketing mix?
Maksim231197 [3]

The 4 P's:

Price - cost of the product

Product - the type of good being sold

Place - how the product will get to the consumer (store, internet, etc)

Promotion - what marketing activities will be used to communicate the product (advertising, sales, etc)

5 0
3 years ago
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