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
ikadub [295]
3 years ago
6

Hutchinson Corporation has zero debt ⎯it is financed only with common equity. Its total assets are $410,000. The new CFO wants t

o employ enough debt to bring the debt/assets ratio to 40%, using the proceeds from the 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:
avanturin [10]3 years ago
7 0

Answer:

Required Debt= $164,000

Explanation:

Debt to asset ratio also called debt ratio is a leverage ratio and is calculated by dividing debt divided by total assets. It is used to measure solvency.

For Hutchinson Corporation

Target debt ratio= 40%

Total assets= $410,000

Debt ratio= Debt/Total assets

0.40 = Debt/ 410,000

Debt= 410,000 * 0.40

Debt= $164,000

You might be interested in
Will Mark as Brainliest!!! +40 extra points Spending money on medical expenses is part of this expenditures approach for calcula
mr_godi [17]

Answer A

Explanation:

8 0
3 years ago
Which of the following options is the field where you enter or edit data
sweet-ann [11.9K]

Answer:

Date

Explanation:

Simple and is easy is that my partners

3 0
2 years ago
Campbell’s Soup has divided the domestic market into more than 20 re- gions, each with its own sales managers that develop speci
Sliva [168]

Answer:

a. micromarketing

Explanation:

Micromarketing -

It is the strategy of marketing , where the advertising is done on the basis of the location and the taste of the people , is referred to as micromarketing .

In this method ,

The ares are bifurcated into small regions , and for each and every region different method of marketing is used , depending on the people and location .

This enables to market the goods and services in a better manner .

Hence , from the given scenario of the question ,

The correct option is a. micromarketing  .

3 0
3 years ago
Organizations often start a new marketing research study by first examining secondary data primarily because
34kurt

Answer:

using this information can result in time and cost savings

Explanation:

5 0
3 years ago
Brad, Scott, and Jake each contribute property to form BSJ Corporation. Brad contributes a building with a fair market value of
Talja [164]

Answer:

<em>The answer is $700,000</em>

Explanation:

<em>From the example given, we find the tax basis will each take in their respective BSJ stock</em>

<em>Contributions done partner wise         (All values in $)</em>

<em>Partner  Contribution Tax Share in Stock  % of Tax   Base Tax base in stock</em>

<em>Name                               Base</em>

<em>Brad         450000        100000         45%          17%       120689.7</em>

<em>Scott 100000         350000         45%          60%     422413.8</em>

<em>Jake 150000          130000         10%          22%     156896.6</em>

<em>                700000           580000                      100%     700000</em>

<em>Therefore, The Total Assets contributed will be equivalent to stock of BSJ issued = $ 700,000</em>

5 0
3 years ago
Other questions:
  • Monica, a new student at Valley High School, becomes friends with a group of teenagers who use marijuana and remain seated durin
    11·1 answer
  • A small business group assigned a member the task of "Devil's Advocate." What is this member's primary duty?a. To encourage grou
    8·1 answer
  • The following model shows how different combinations of goods can be produced in an economy with available resources/technology.
    8·1 answer
  • Cruz Gray Inc. positions its beauty and skin care products as the only products in the market that are 100 percent natural and a
    12·1 answer
  • A company has been using the fair-value method to account for its investment. The company now has the ability to significantly c
    10·1 answer
  • a manufacturing firm is considering two locations for a plant to produce a new product. the two locations have fixed and variabl
    10·1 answer
  • Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct
    13·1 answer
  • Suppose that there are two types of employees: Narutos and Sasukes. Employers cannot distinguish between the two types during a
    13·1 answer
  • Archer, in Chicago, wrote to Ganze in New York City offering to purchase her antique car. When she received the letter, Ganze ma
    10·1 answer
  • Davis hardware company uses a perpetual inventory system. how should davis record the sale of merchandise, costing $770, and sol
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!