A firm has a long-term debt-equity ratio of .4. Shareholders' equity is $1 million. Current assets are

Question:

A firm has a long-term debt-equity ratio of .4. Shareholders' equity is $1 million. Current assets are $200,000, and the current ratio is 2. The only current liabilities are notes payable. What is the total debt ratio?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

See More Books

Question Posted: Jun 30, 2016 09:08 AM

See More Questions

Current Assets 2000 2001 Cash 200 1 000 Accounts receivable 1 600 1 000 Inventory 2 200 2 600 TOTAL CURRENT ASSETS 4 000 4 600 Gross Fixed Assets 12 000 12 400 Less Accum Depreciation 6 000
Compare the number of new businesses per 10,000 residents between Professional and Agriculture SA3s (both in 2011). The p-value (2 decimal places) obtained after performing a one-tailed t-test for...
A firm has a debt to equity ratio of 40%, debt of $250,000, and net income of $100,000. The return on equity is?
Find the lengths of the curves. x = 5 cos t - cos 5t, y = 5 sin t - sin 5t, 0 t /2
Jim Overstreet, inventory control manager for Itex, receives wheel bearings from Wheel-Rite, a small producer of metal parts. Unfortunately, Wheel-Rite can only produce 500 wheel bearings per day....
A house is on sale in Markham. Marlene has an option to pay $575000 lump sum or pay $6000 at the end of every month for the next 10 years. If money earns 5% compounded monthly, which option has a...
Raster Imaging Company has a new management team that has developed an operating plan to improve upon last year's ROE. The new plan would place the debt ratio at 55 percent, which will result in...
One subunit of Speed Sports Company had the following financial results last month: Requirements 1. Complete the performance evaluation report for this subunit (round to four decimals). 2. Based on...
Listed below are the transactions that affected the shareholders' equity of Branch-Rickie Corporation during the period 2024-2026. At December 31, 2023, the corporation's accounts included: ($ in...
Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to...
If a firm's inventory level of $ 10,000 represents 30 days' sales, what is the annual cost of goods sold? What is the inventory turnover ratio ?
A firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. What is the ratio of the book value of debt to the market value of equity?
Coin collecting is big business around the world. As an illustration, there are more than 500,000 American coins and more than 100,000 Canadian coins for sale/auction on Ebay. Moreover, there are...
Charging flood victims $30 for a case of water or $10 for a gallon of gas doesnt sit right. And a majority of states, including Texas, have laws against price gouging. The state attorney general has...
A pharmacist received a bottle of cephalosporin capsules. Unknown to the pharmacist, the capsules also contained small amounts of penicillin. The pharmacist dispensed the capsules to a patient who is...
The FDA issued a final compliance guidance related to pharmacy compounding. In the guidance, the FDA clarified which activities compounding pharmacies could lawfully engage and which activities the...
Explain how each of the following actions will affect the level of planned investment spending and unplanned inventory investment. Assume the economy is initially in incomeexpenditure equilibrium. a....
The Conference Board publishes the Consumer Confidence Index (CCI) every month based on a survey of 5,000 representative U.S. households. It is used by many economists to track the state of the...
A student made drawings of four blood cells as shown in the figure. The correct identification of the cells is: granular cytoplasm 2 nucleus nucleus nucleus 3.
What is taxable income, and what is the formula for determining taxable income?
Mutt.Com was founded in 2013 by two graduates of the University of Wisconsin with help from Georgina Sloberg, who had built up an enviable reputation for backing new start-up businesses. Mutt.Com's...
Hubbard's Pet Foods is financed 80% by common stock and 20% by bonds. The expected return on the common stock is 12%, and the rate of interest on the bonds is 6%. Assume that the bonds are default...
Digital Fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use...
Find all the complex numbers z such that z += 0. Is the set open or closed? {zC: z*+i=0}
For each of the following matrices A Maxn (R), test A for diagonal- izability, and if A is diagonalizable, find an invertible matrix Q and a diagonal matrix D such that Q-1AQ = D. (a) (63) 2 1 3 (b)...
A summary of two stocks is shown. 52W high 52W low Name of Stock Symbol High Low Close 37.18 29.39 Zycodec ZYO 11.76 7.89 Unix Co UNX 39.06 32.73 34.95 16.12 12.11 15.78 Last year, a stockholder...

A firm has a long-term debt-equity ratio of .4. Shareholders' equity is $1 million. Current assets are

Question:

Step by Step Answer:

Debtequity ratio Longterm debt 04 1000000 400000 And curren...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions