subject
Business, 11.12.2019 20:31 jayc36809

Companies that use debt in their capital structure are said to be using financial leverage. using leverage can increase shareholder returns, but leverage also increases the risk that shareholders bear. consider the following case: universal exports inc. is a small company and is considering a project that will require $600,000 in assets. the project will be financed with 100% equity. the company faces a tax rate of 25%. what will be the roe (return on equity) for this project if it produces an ebit (earnings before interest and taxes) of $140,000?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 21:00
Following is a list of various costs incurred in producing replacement automobile parts. with respect to the production and sale of these auto parts, classify each cost as either variable costs, fixed costs, or mixed costs. 1. oil used in manufacturing equipment 2. plastic 3. property taxes, $165,000 per year on factory building and equipment 4. salary of plant manager 5. cost of labor for hourly workers 6. packaging 7. factory cleaning costs, $6,000 per month 8. metal 9. rent on warehouse, $10,000 per month plus $25 per square foot of storage used 10. property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 11. straight-line depreciation on the production equipment 12. hourly wages of machine operators 13. electricity costs, $0.20 per kilowatt-hour 14. computer chip (purchased from a vendor) 15. pension cost, $1.00 per employee hour on the job
Answers: 3
question
Business, 21.06.2019 23:30
Starting at age 30, you deposit $2000 a year into an ira account for retirement. treat the yearly deposits into the account as a continuous income stream. if money in the account earns 7%, compounded continuously, how much will be in the account 35 years later, when you retire at age 65? how much of the final amount is interest?
Answers: 2
question
Business, 22.06.2019 03:00
Tina is applying for the position of a daycare assistant at a local childcare center. which document should tina send with a résumé to her potential employer? a. educational certificate b. work experience certificate c. cover letter d. follow-up letter
Answers: 1
question
Business, 22.06.2019 14:30
Which of the following is an example of a positive externality? a. promoting generic drugs would benefit people. b. a lower inflation rate would benefit most consumers. c. compulsory flu shots for all students prevents the spread of illness in the general public. d. singapore has adopted a comprehensive savings plan for all workers known as the central provident fund.
Answers: 1
You know the right answer?
Companies that use debt in their capital structure are said to be using financial leverage. using le...
Questions
question
Health, 16.03.2020 23:28
question
Biology, 16.03.2020 23:28
question
World Languages, 16.03.2020 23:28
question
Mathematics, 16.03.2020 23:28
Questions on the website: 13722367