A firm held assets worth 120 million by the end of 2020 which increased to 138 million

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A firm held assets worth €120 million by the end of 2020 which increased to €138 million by the end of 2021. Assume that the debt level of the firm was constant at €90 million in both years.

(a) Compute the percentage increase in the value of equity of the firm.

(b) Compute the leverage ratio of the firm in 2020 and 2021.

Related Book For answer-question

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: May 23, 2023 07:47 AM

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A firm held assets worth 120 million by the end of 2020 which increased to 138 million

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a To compute the percentage increase in the value of equity we need to calculate the difference betw... View the full answer

Foundations of Finance The Logic and Practice of Financial Management

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