subject
Business, 11.05.2021 01:00 20cschultz

Current capital stucture: Assets $15 million Debt $0 Equity $15 million Shares outstanding 600,000 Gond coupon Rate N/A Proposed capital stucture: Assets $15 million Debt $6 million Equity $9 million Shares outstanding 400,000 Bond coupn rate 8%. there are no taxes. EBIT is expected to be 2.5 million, but could be as high as 3.5 million if an economic expansion occurs, or as low as $2 million if a recession occurs. All values are market values. what is ROE for the proposed capital structure if the expected state occurs

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 00:30
Salty sensations snacks company manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. the company has budgeted the following costs for the upcoming period: 1 factory depreciation $33,782.00 2 indirect labor 84,456.00 3 factory electricity 8,446.00 4 indirect materials 40,356.00 5 selling expenses 26,900.00 6 administrative expenses 17,200.00 7 total costs $211,140.00 factory overhead is allocated to the three products on the basis of processing hours. the products had the following production budget and processing hours per case: budgeted volume (cases) processing hours per case tortilla chips 3,600 0.25 potato chips 5,300 0.11 pretzels 2,300 0.49 total 11,200 required: a. determine the single plantwide factory overhead rate.* b. use the factory overhead rate in (a) to determine the amount of total and per-case factory overhead allocated to each of the three products under generally accepted accounting principles. refer to the amount descriptions list provided for the exact wording of the answer choices for text entries.* * if required, round your answers to the nearest cen
Answers: 1
question
Business, 22.06.2019 10:00
In a chapter 7 bankruptcy, a debtor:
Answers: 2
question
Business, 22.06.2019 10:30
On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?
Answers: 2
question
Business, 22.06.2019 22:20
Who owns a renter-occupied apartment? a. the government b. a landlord c. the resident d. a cooperative
Answers: 1
You know the right answer?
Current capital stucture: Assets $15 million Debt $0 Equity $15 million Shares outstanding 600,000 G...
Questions
question
Mathematics, 28.07.2019 18:50
question
Health, 28.07.2019 18:50
Questions on the website: 13722367