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
gregori [183]
3 years ago
8

Debt Management Ratios You are considering a stock investment in one of two firms (LotsofDebt, Inc. and LotsofEquity, Inc.), bot

h of which operate in the same industry. LotsofDebt, Inc. finances its $30 million in assets with $29 million in debt and $1 million in equity. LotsofEquity, Inc. finances its $30 million in assets with $1 million in debt and $29 million in equity. Calculate the debt ratio and equity multiplier for the two firms.

Business
1 answer:
Scrat [10]3 years ago
4 0

Answer:

Please see attachment

Explanation:

Please see attachment

You might be interested in
If manufacturing overhead has been underallocated during the period, then which of the following is true?(a) the jobs produced d
Alecsey [184]

Answer:

The correct answer is B: the jobs produced during the period have been under-costed

Explanation:

Giving the following information:

If manufacturing overhead has been under-allocated during the period, then which of the following is true?

(a) the jobs produced during the period have been over-costed

(b) the jobs produced during the period have been under-costed

(c) the jobs produced during the period have been costed correctly

(d) none of the above

When manufacturing overhead has been under-allocated means that the actual costs incurred where superior that the estimated cost for the period.

7 0
3 years ago
financial calculator Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a resu
Ann [662]

Answer:

NPV = 138,347.55

Explanation:

<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>

We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:

<em>Prevent Value of  operating cash flow</em>

PV =A× (1- (1+r)^(-n))/r

A- 23,900, r - 12%, n- 5

PV = $23,900 × (1- (1.12)^(-5))/0.05

=206,769.963

<em>PV of Working Capital recouped</em>

PV = 5600× 1.12^(-5)

    = 3,177.59

NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow

NPV = (66,000) + (5600) + 3,177.59 + 206,769.96

NPV = 138,347.55

5 0
3 years ago
Bank A quotes a bid rate of $.300 and an ask rate of $.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $.306 an
alexdok [17]

Answer:

B. $1,639 ​

Explanation:

To do arbitraje we will ask at Bank A for $0.305

and then bid in Bank B at $0.306

As the transactions has no cost we are doing a profit by using the exchange as they allowed. Doing this procedure will at some point eliminate the difference in exchange rate for these bank as the purchase will rise the ask rate for Bank A and the sale will decrease the bid rate.

500,000 \times \frac{0.306}{0.305}

Total: 501639,3442622951

The profit will be for: 501,639.34 - 500,000 = 1,639.34

7 0
3 years ago
What is something economists need to know the least in order to effectively fine tune the economy?
Art [367]
<span>b. the cpi is what the economists need to know the least.
CPI stands for Consumer Price index which measures the change in price level based on the goods and services purhased by consumers. The Costumer price Index will not affect the economic situation because it only calculate the </span><span>measurement of the price changes of a basket of goods over time.</span>
6 0
3 years ago
Hey how is everyone's morning going so far
Firdavs [7]

Answer:

good hope you're doing great!

4 0
3 years ago
Other questions:
  • New technology lowering the costs of production will cause the equilibrium price to ______________ and the equilibrium quantity
    6·2 answers
  • 25-Which of the following is the BEST indicator of the economic​ well-being of the average​ citizen?
    8·2 answers
  • Inventory records for Herb's Chemicals revealed the following: March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200 Purchase
    15·1 answer
  • Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers
    14·1 answer
  • People who go on to get a _______ are considered experts in their field.
    14·1 answer
  • Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of 8 years has been depreciated using the straig
    6·2 answers
  • Chief among the factors playing a part in determining an organization's structure are _______.
    8·1 answer
  • Why should you purchase insurance?
    5·1 answer
  • Influencer Technology is working to improve the level of quality and reduce the level of complaints in the services it provides
    13·1 answer
  • How can communication help to make a business or a company thrive?​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!