Hello, please advise, thank you.

Question #4

I got 4.5 percentage points and it was wrong.

Question #7

Commonwealth Construction (CC) needs $2 million of assets to get started, and it expects to have a basic earning power ratio of 15%. CC will own no securities, all of its income will be operating income. If it so chooses, CC can finance up to 35% of its assets with debt, which will have a 9% interest rate. If it chooses to use debt, the firm will finance using only debt and common equity, so no preferred stock will be used. Assuming a 25% tax rate on taxable income, what is the difference between CC's expected ROE if it finances these assets with 35% debt versus its expected ROE if it finances these assets entirely with common stock? Round your answer to two decimal places. percentage points Lloyd Inc. has sales of $400,000, a net income of $40,000, and the following balance sheet: Cash $ 60,320 Accounts payable $ 133,400 Receivables 183,280 Notes payable to bank 52,200 Inventories 684,400 Total current liabilities $ 185,600 Total current assets $ 928,000 Long-term debt 140,360 Net fixed assets 232,000 Common equity 834,040 Total assets $ 1,160,000 Total liabilities and equity $ 1,160,000 The new owner thinks that inventories are excessive and can be lowered to the point where the current ratio is equal to the industry average, 2.25x, without affecting sales or net income. If inventories are sold and not replaced (thus reducing the current ratio to 2.25x), if the funds generated are used to reduce common equity (stock can be repurchased at book value), and if no other changes occur, by how much will the ROE change? Do not round intermediate calculations. Round your answer to two decimal places. ROE will -Select- Aby percentage points. What will be the firm's new quick ratio? Do not round intermediate calculations. Round your answer to two decimal places