Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8. The lower the degree of financial leverage employed by IS, I. . Lower is the number of outstanding shares of stock. b. Lower is

image text in transcribed
8. The lower the degree of financial leverage employed by IS, I. . Lower is the number of outstanding shares of stock. b. Lower is the probability that the firm could default. c. Higher is the amount of debt incurred d. Higher debt a firm has per dollar of total assets. 9. High Mountain Foods has an equity multiplier of 1.72, a total asset turnover of percent. What is the return on equity?. a. 8.98 percent b. 11.94 percent c. 12.96 percent d. 14.38 percent 16, and a profit margin of return on equity of 16.2 10. Lancaster Toys has a profit margin of 5.1 percent a total asset turnover of 1.84, and percent. What is the debt-equity ratio? 42 3 11. Ar the beginning of the year, the long-term debt of a firm was $72.918 and total debt was $138.407 At the end the year, long-term debt was $68,219 and total debt was $145,838. The interest paid was 56,430, What is the amount of the cash flow to creditors? $1001 $1,731 $11, 129 d. $13.861 122 You ran a little short on your spring break acation, so you put $1.500 on your credit card. You can only afford make the minimum payment of 540 per month. The interest rate on the credit card is percent per month. How long will you need to pay off the $1.500? 4.85 years b6 37 years c. 5.83 years 0.7.26 years 13. An ordinary annuity is best defined by which one of the following? a. Increasing payments paid for a definitive period of time. b. Equal payments paid at the end of regular intervals over a stated time period e Equal payments paid at the beginning of regular intervals for a limited time period d. Equal payments that occur at set intervals for an unlimited period of time. Copyr 14. Find the present value of S1000 to be received 8 years from today if the interest rate is 1l per cent a $416.64 b. $432.89 c. $433.93 d. $440.67 tatior e sam bt con Side 1 of 101 Terms of the bordfinderture English (United States)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Oxford Handbook Of State Capitalism And The Firm

Authors: Mike Wright, Geoffrey T. Wood, Alvaro Cuervo-Cazurra, Pei Sun, Ilya Okhmatovskiy, Anna Grosman

1st Edition

0198837364, 978-0198837367

More Books

Students also viewed these Finance questions

Question

10. What is meant by a feed rate?

Answered: 1 week ago