subject
Business, 07.11.2019 22:31 allisonklinger1786

Firm ab and firm yz are identical except for their debt-to-total-assets ratios (d/tas) and interest rates on debt. each has $200,000 in assets, $40,000 ebit, and a 40 percent marginal tax rate. firm ab has a d/ta ratio of 40 percent and pays 7.5 percent interest on its debt, whereas yz has a 60 percent interest on its debt and pays 10 percent interest on debt. each firm has 5,000 shares of common stock outstanding. calculate each firm's eps and roe (roe = net income/equity). discuss your results.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 20:10
In three to four sentences, explain the effect of a price ceiling on the quantity of a good and who this intervention intends to assist
Answers: 3
question
Business, 22.06.2019 07:50
In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?
Answers: 2
question
Business, 22.06.2019 23:30
Which statement best describes the two reactions? abcl, + h2 β†’ 2hci2h + h = he + inreaction a involves a greater change, and reaction b involves a change in element identity.reaction b involves a greater change and a change in element identityreaction a involves a greater change and a change in element identity.reaction b involves a greater change, and reaction a involves a change in element identity.
Answers: 1
question
Business, 23.06.2019 07:00
Ricardo conducts a survey to learn where consumers get information for buying used cars. this is an example of
Answers: 1
You know the right answer?
Firm ab and firm yz are identical except for their debt-to-total-assets ratios (d/tas) and interest...
Questions
question
Social Studies, 20.02.2020 09:11
question
Mathematics, 20.02.2020 09:11
question
Social Studies, 20.02.2020 09:12
question
Mathematics, 20.02.2020 09:12
question
Mathematics, 20.02.2020 09:13
question
Mathematics, 20.02.2020 09:13
question
History, 20.02.2020 09:13
Questions on the website: 13722361