Last year, InDebt Company paid $75 million of interest expense, and its average rate of interest for the year was 10%. The company’s ROE is 15%, and it pays no dividends. Estimate next year’s interest expense assuming that interest rates will fall by 25% and the company keeps a constant equity multiplier of 20%.
Answer to relevant QuestionsMelissa Popp is thinking about buying some shares of R. H. Lawncare Equipment, at $48 per share. She expects the price of the stock to rise to $60 over the next 3 years. During that time she also expects to receive annual ...Briefly describe each of the following and note how it is computed and how it is used by technicians: a. Advance-decline lines b. Arms index c. On-balance volume d. Relative strength index e. Moving averages Can the market really have a measurable effect on the price behavior of individual securities? Explain. Describe each of the following approaches to technical analysis and note how it would be used by investors. a. Confidence index b. Arms index c. Trading action d. Odd-lot trading e. Charting f. Moving averages g. On-balance ...Brett Daly is an active stock trader and an avid market technician. He got into technical analysis about 10 years ago, and although he now uses the Internet for much of his analytical work, he still enjoys running some of ...
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