28. A firm has total debt of $2,838 and total equity of $2,556. What is their...

 

Transcribed Image Text:

28. A firm has total debt of $2,838 and total equity of $2,556. What is their equity multiplier? 29. Your company had net sales of $50,000 over the past year. During that time, average receivables were $10,000. What was the average collection period, or DSO? 30. You need $3,000 to buy a new stereo for your apartment. If you have $2,115 to invest at an annual effective rate of 6%, how long will you have to wait to buy the stereo? 28. A firm has total debt of $2,838 and total equity of $2,556. What is their equity multiplier? 29. Your company had net sales of $50,000 over the past year. During that time, average receivables were $10,000. What was the average collection period, or DSO? 30. You need $3,000 to buy a new stereo for your apartment. If you have $2,115 to invest at an annual effective rate of 6%, how long will you have to wait to buy the stereo? 28. A firm has total debt of $2,838 and total equity of $2,556. What is their equity multiplier? 29. Your company had net sales of $50,000 over the past year. During that time, average receivables were $10,000. What was the average collection period, or DSO? 30. You need $3,000 to buy a new stereo for your apartment. If you have $2,115 to invest at an annual effective rate of 6%, how long will you have to wait to buy the stereo?

Answer rating: 100% (QA)

Solution 28 The equity multiplier is calculated by dividing the total assets by the total equity The formula is Equity Multiplier Total Debt Total Equ... View the full answer