subject
Business, 06.07.2019 03:30 justarando

Firm's hl and ll are identical except for their leverage ratios and the interest rates they pay on debt. each has $20 million in assets, $4 million of ebit, and is in the 40 percent federal-plus-state tax bracket. firm hl, however, has debt ratio (d/a) of 50 percent and pays 12 percent interest on its debt, whereas ll has a 30 percent debt ratio and pays only 10 percent interest on its debt. calculate the rate of return on equity (roe) for hl

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 15:30
Last week, linda's commission check was $84. if she earns a 12.5% commission on sales, what were her total sales?
Answers: 2
question
Business, 21.06.2019 20:30
Long-distance providers are becoming increasingly concerned about certain activities within their industry. various companies come together voluntarily to implement new standards of social responsibility that members must abide by. what seems to be the primary motivation in this case for an increased interest in social responsibility? - because corporations are creations of society, they are responsible for giving back to the communities in which they operate.- these companies have realized it is in their best interest to increase their social responsibility before they are once again subject to stricter regulations.- these companies are using social responsibility as a means to increase their profitability, both short term and long term.- long-distance providers have started taking pride in their industry and its record for social responsibility.- they feel a responsibility to their stockholders, employees, the government, investors, and society as a whole.
Answers: 2
question
Business, 22.06.2019 04:30
Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.
Answers: 3
question
Business, 22.06.2019 05:00
You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?
Answers: 2
You know the right answer?
Firm's hl and ll are identical except for their leverage ratios and the interest rates they pay on d...
Questions
question
Biology, 08.10.2019 23:00
question
Mathematics, 08.10.2019 23:00
Questions on the website: 13722360