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zysi [14]
3 years ago
13

g Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has 5.2 million shares outstand

ing. The firm's total capital is $120 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places.
Business
1 answer:
Ede4ka [16]3 years ago
7 0

Answer:

48.00%

Explanation:

For computing the debt to capital ratio, first we have to determine the equity value and debt value which is shown below:

Equity value = Number of outstanding shares × stock price per share

                    = 5.2 million shares × $12

                    = $62.4 million

We know,

Total capital = Debt + equity

$120 million = Debt + $62.4 million

So, the debt would be

= $120 million - $62.4 million

= $57.6 million

Now the debt to capital ratio would be

= $57.6 million ÷ $120 million

= 48.00%

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When regulators engage in microprudential regulation, they focus on
Kay [80]

Answer:

A.

Explanation:

Microprudential regulations refers to making sure that the balance sheets or "books" of individual institutions are robust to shocks. Meaning that the regulators that usually engage in this  are focusing  on the safety and soundness of each customer of a financial institution, by making sure the institutions do not close and the customers lose their money.

3 0
3 years ago
A family wishes to save for future college expenses. Which financial tool should the family invest in?
emmainna [20.7K]

Answer:

529 Plan

Explanation:

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs.

8 0
3 years ago
The amount of amount of deadweight loss as a result of the tax is:______
klio [65]

Answer:

D. $5,000

Explanation:

This deadweight in a lot of cases are seen to occur especially when demand and supply are not in equilibrium and in and in the above scenario, it is pegged at $5000. Therefore sometimes consumers experience shortages, and producers earn but they'd otherwise.

Taxes are also seen in the creation of deadweight loss because they prevent people from engaging in purchases they'd otherwise make because the ultimate price of the merchandise is above the equilibrium value. If taxes on an item rise, the burden is commonly split between the producer and therefore the consumer, resulting in the producer receiving less cash in on the item and therefore the customer paying the next price.

3 0
2 years ago
Usually, price elasticities of supply areA) positive, because higher prices yield larger quantities supplied.B) considered short
Anna35 [415]

Answer:

A) Positive, because higher prices yield larger quantities supplied.

Explanation:

The correct answer to the question is A) Positive, because higher prices yield larger quantities supplied. The price elasticity of supply determines the change in price as a response to the change in supply of the good or service supplied. This is usually calculated in a figure that determines that if price increases what will be the impact on its supply, which usually is a positive figure.

3 0
3 years ago
The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work
I am Lyosha [343]

Answer:

Preparation of the adjusting entries as of December 31, 2015.

Dr Salaries Expense 3,920

Cr Salaries Payable 3,920

Explanation:

Since we were been told in the question that all the 15 employees worked the first 2 days of that week, the Adjustment we therefore be $3,920( 1,960×2) . And the transaction will be recorded as:

Dr Salaries Expense 3,920

Cr Salaries Payable 3,920

The Adjustment will be :

1,960 x 2 = 3,920

Therefore the pay that occured in New Year's Day will not be used because it falls in the next year.

4 0
3 years ago
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