Question: 8:58 CF_2.pdf al Task 1 An enterprise wner is considering the options to the funde folie activities, each with a different source of capital option

 8:58 CF_2.pdf al Task 1 An enterprise wner is considering the

8:58 CF_2.pdf al Task 1 An enterprise wner is considering the options to the funde folie activities, each with a different source of capital option business activities financed exclusively with equity of USD 600,000, option equity amounts to USD 6.000, the remaining USD 150,000 is borrowed from a bank at the annual rate of 76% option III equity amounts to USD 330,000, the remaining USD 20.000 is borrowed from a bank at the annual rate of 10:45 The annual sales memes expected to mach USD 766,000 with letting costs being USD 657,000. The enterprise pays 19 Income tax Based on the information provided, determine return on equity depending on the adopted financing option and increase (ARO) possible to obtain due to using the debt. the degree of financial leverage for each financing option upper/lower level of EBIT and the upper/lower of retum en equity needed for financial leverage to work Task 2 A company is financed with equity of USD 45 million and loan of USD 2.5 million with an interest rate of 8.6% per annum. The ENTUSD 1.12 The appicable tax rate is 19%. Use the above information to calculate the following *) change in the return on equity and the degree of financial league a 15 income in EBIT next year b) change in the return on equity and the dew of financial margiven 255 decrease in EBIT in the following year the year following the year in which EBIT w by 15)

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