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andrew11 [14]
3 years ago
10

Edwards Enterprises follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restric

ted or maybe to a relaxed policy. The firm's annual sales are $400,000; its fixed assets are $100,000; its target capital structure calls for 50% debt and 50% equity; its EBIT is $39,000; the interest rate on its debt is 10%; and its tax rate is 40%. With a restricted policy, current assets will be 15% of sales, while under a relaxed policy they will be 25% of sales. What is the difference in the projected ROEs between the restricted and relaxed policies?

Business
1 answer:
VashaNatasha [74]3 years ago
8 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Uncle John's Pipe Company has been experiencing several years of financial difficulty and, thus, has considered maintaining its
Iteru [2.4K]

Answer:

The value of its common stock is $29.41

Explanation:

As the Dividend payment is for indefinite period of time, This is the perpetuity payment. The value of share can be determined  by calculating the present value of perpetuity payment.

The formula for the present value of perpetuity is as follow

Present value of perpetuity = Cash flow / Required Rate of return

In this case the present value of perpetuity is the value of stock cash flows is The dividend payment.

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Answer:

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They underwrite, distribute, and design investment securities for corporations to help them raise capital.

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They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns.

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With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors.

Financial Institution: Hedge Funds

8 0
3 years ago
Suppose that businesses buy a total of $170 billion of the four resources (labor, land, capital, and entrepreneurial ability) fr
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This value can be understood as goodwill that households are recognized for their ideas and can bring a future return to the businesses. The businesses had assessed the future stream of cash the household could bring and, basing our guess on businesses behaving rationally, and they found that 170 was an amount that will recognize these future opportunities

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plaintiff was injured when the vehicle which he was operating was rear-ended by an 18-wheeler operated by driver and owned by ow
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<h3>What is mean by plaintiff ?</h3>

A plaintiff is the person or entity who files a lawsuit with the court. The plaintiff is looking for a legal remedy by doing this. If the search is successful, the judge will rule in the plaintiff's favor and issue the necessary orders.

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1 year ago
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Answer:

Researching South American holiday destinations online.

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As Carlton runs an adventure excursion company in South America and he'd like to increase the number of people booking his tours, researching South American holiday destinations online can lead potential customers to Carlton's company through Google Search ads. In this way, Carlton can have a better idea abut the trends and insights about his potential prospects which definitely will help him in attracting, targeting and getting them in a better and effective way, theretofore, he can increase the number of people booking his tours.

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