$10.00 Complete answers with explanations, all in Excel so you can see the calculations and formulas used
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- Posted on May 24, 2009 at 12:29:33PM
A:
Preview: ... .0 $100.0 Assets are $666.67 <br> Interest $0.0 $18.0 Debt is 200, 9% interest is 18 <br> EBT $100.0 $82.0 <br> Net Income $60.0 $49.2 40% tax rate *Net income goes down <br><br> Assets $666.7 $666.7 Assets are $666.67 <br> Debt $0.0 $200.0 Take on 200 in debt <br> Equity $666.7 $466.7 <br><br> EPS $0.09 $0.11 *EPS goes <see attachment> <br> ROE 9.0% 10.5% *ROE <see attachment> <br> ROA 9.0% 7.4% *ROA <see attachment> <br><br> The only thing left is <see attachment>, and it d ...
The full tutorial is about 334 words long plus attachments.
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Finance 8 Questions.xls (24K)
$9.00 Complete answers with explanations and procedures by a Certfied Public Accountant
- This tutorial hasn't been purchased yet.
- Posted on May 24, 2009 at 12:57:47PM
A:
Preview: ... e – variables cost<br>Let x = selling price<br>EBIT = revenues – variable cost – fixed cost<br>95,000 = 60,000x – 50%*60,000x – 120,000 <br>95,000 = 60,000x – 30,000x – 120,000 <br>95,000 = 30,000x – 120,000 <br>30,000x = 120,000 + 95,000<br>30,000x = 215,000<br>x = 215,000/30000<br>x = $7.17<br>ANSWER: $7.17<br><br>Question 2<br>Firm A<br>Equity = 2 million x 50% = 1 million<br>Debt = 1 million<br>Interest expense = 1,000,000 x 12% = 120,000<br>Earnings before tax = 400,000 – 120,000 = 280,000<br>Income tax = 280,000 x 40% = ...
The full tutorial is about 379 words long .
$12.00 Unit 9_finance
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- Posted on May 26, 2009 at 9:31:40PM
A:
Preview: ... educe the company’s WACC and increase its stock price. Which of the following is also likely to occur if the company goes ahead with the planned recapitalization? (Points: 6) <br> The company’s net income will increase. <br> The company’s earnings per share will decrease. <br> The company’s cost of equity will increase. <br> The company’s ROA will increase. <br> The company’s ROE will decrease. <br><br><br>ROA = NI/TA. If total assets remain the same, but NI decreases (because of the new interest payment), ROA will decrease. NI will fall, but not as much in comparison to the amount that common equity will fall, thus ROE = NI/CE will rise. <br> BEP will remain the same. BEP = EBIT/TA, where TA and EBIT remain the same.<br><br><br>5. <br>Fletcher Corp. has a capital budget of $1,000,000, but it wants to maintain a target capital structure of 60% debt and 40% equity. The company forecasts this year’s net income to be $600,000. If the company follows a residual dividend policy, what will be its dividend paid? <br><br>(Points: 6) <br> $120,000 <br> $140,000 <br> $160,000 <br> $180,000 <br> $200,000 <br><br> Residual dividend model:<br>Retained Earnings Needed = $1,000,000 (0 ...
The full tutorial is about 1280 words long plus attachments.
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Unit_9_Finance.doc (35K) (Preview)
