Question: practice problem help Question 17 5 pts A firm is considering actions that will raise its debt ratio. It is anticipated that these actions will
Question 17 5 pts A firm is considering actions that will raise its debt ratio. It is anticipated that these actions will have no effect on sales, operating income, or on the firm's total assets. If the firm does increase its debt ratio, which of the following will occur? The return on assets (NI/TA) will increase. The times interest eamed (EBIT/) will increase. The basic earning power (EBIT/TA) will decrease. The total asset turnover (S/TA) will increase The net profit margin (NI/S) will decrease. Question 18 5 pts You are thinking of buying a factory for $250,000, with a 20 percent cash down payment. The remaining $200,000 will be paid annually over 15 years with a 10% rate of interest on the unpaid balance. What equal annual payment is required to retire the principal and interest of the loan? The loan payment should be computed as a regular annuity. $29.365 $24.829 $31.036 $32.868 $26.295
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