Answer:
1. Current bonds price = $81.86.
2. Yield to maturity = 22.16%.
3. 3. Expected Return = 7.5%.
Explanation:
Required Rate = Rf + beta*MRP
= 5% + 0.25*(15% - 5%)
= 5% +0.25*10%
= 5% + 2.5% = 7.5%
Required Rate = 7.5%
Expected Future Value = 70% x $100 + 30% x $60
= (0.7*$100) + (0.3*$60)
= $(70+18) = $88
Expected Future Value = $88
1. Current bonds price = 88/1.075 = $81.86
2. Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 = 22.159785% = 22.16%
3. Expected Return = 7.5%
Answer:
Company HD pays less in taxes
Explanation:
In the case when the company HD and LD have the similar rate of tax, sales revenue, etc even both have favorable net incomes also the company Hd contains greater debt ratio due to which it has more interest expense so that means company hd would pay less taxes
Therefore the above represent the answer
and, this is the answer but the same is not provided in the given options
The owner’s return on equity is 0.111
$40,000 ÷ $360,000 = 0.111 = 11%
In finance, equity is the possession of property that could have money owed or other liabilities attached to them. equity is measured for accounting functions by using subtracting liabilities from the fee of the property.
Equity is described as “the state, first-rate or ideal of being simple, impartial and truthful.” The idea of fairness is synonymous with fairness and justice. it's far helpful to consider fairness as now not genuinely a preferred situation or a lofty value.
Equity may be calculated through subtracting liabilities from property and may be carried out to an unmarried asset, along with actual property, or to a business. as an instance, if someone owns a house worth $400,000 and owes $three hundred,000 on the loan, the difference of $a hundred,000 is fairness.
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Answer:
36*0.06
600
there are 600 total members in the club.
Explanation:
Answer:
The value of the net working capital to total assets ratio is 0.5067≅0.51
Explanation:
Given Data:
Accounts payable =$2,214
Inventory= $7,950
Cash=$1,263
Fixed Asset=$8,400
Accounts receivable=$3,907
Long-term debt=$4,200
Required:
The value of the net working capital to total assets ratio=?
Solution:
Net working Capital=Inventory+Cash+Accounts receivable-Accounts payable
Net working Capital= $7,950+$1,263+$3,907-$2,214
Net working Capital= $10,906.
Total assets=Inventory+Cash+Accounts receivable+ Fixed assets
Total assets= $7,950+$1,263+$3,907+$8,400
Total assets=$21,520
Ratio=
The value of the net working capital to total assets ratio is 0.5067≅0.51.
