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gogolik [260]
3 years ago
14

You are considering a stock investment in one of two firms (Lots of Debt, Inc. and Lots of Equity, Inc.), both of which operate

in the same industry. Lots of Debt, Inc. finances its $34.25 million in assets with $32.25 million in debt and $2.00 million in equity. Lots of Equity, Inc. finances its $34.25 million in assets with $2.00 million in debt and $32.25 million in equity. Calculate the debt ratio. (Round your answers to 2 decimal places.) Calculate the equity multiplier. (Round your answers to 2 decimal places.)
Business
1 answer:
Luden [163]3 years ago
6 0

Answer:

Debt Ratio = Total Debt Total/ Assets

Equity Multiplier = Assets/Equity

<h2>Lots of Debt</h2>

Debt Ratio

= 32.5/34.25

= 0.95

Equity Multiplier

= 34.25/2

= 17.13

<h2>Lots of Equity </h2>

Debt Ratio

= 2/34.25

= 0.06

Equity Multiplier

= 34.25/32.25

= 1.06

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Answer:

Option A

Explanation:

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The target of this technique is therefore the entire guitar, not really the pickups. The smaller the process of manufacturing their instruments, the better manoeuvrability they have on the market. When they have reduced costs, they may change rates downwards in order to capture further market penetration.

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Your company has a cost differentiation strategy regarding its products. there are several new entrants into your saturated mark
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1) Change the nature of the product

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3 years ago
Refer to the following table to answer the following questions:
sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

Checkable \ deposits =  \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\

Solution:

  • \text{M1= currency +checkable deposits + travellers check}

    = $400000000+$340000000+$4000000

    = $744000000

\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}

      =  $744000000 + $50000000+$6000000+$850000000

       = $1,650,000,000

  • Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow  
  • Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
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3 years ago
price level to Suppose the central bank in the nation of Zook attempts to pay off its national debt by printing large amounts of
katen-ka-za [31]

Answer:

87.50%

Explanation:

The calculation of value of Zook's currency will decrease in percentage is shown below:-

For computing the Percentage decrease first we need to find out the value of money which is shown below:-

Value of money = 1 ÷ Price level

= 1 ÷ 8.00

= 0.125

Percentage decrease = (Value of money - 1) ÷ 1 × 100%

= (0.125 - 1) ÷ 1 × 100%

= -0.875 ÷ 1 × 100%

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3 years ago
The wet dog surf company borrows $32,000 for 4 months and will pay $1,120.00 interest . calculate wet dog's annual percentage in
Hunter-Best [27]
The formula is
I=prt
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p principle 32000
T time 4/12
R annual percentage interest rate?
Solve for r
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R=1,120÷(32,000×(4÷12))
R=0.105×100
R=10.5%
6 0
4 years ago
Read 2 more answers
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