Business, 24.07.2020 21:01 zsmart909

Your company's summarized financial information for the beginning and projected end of the current year is as follows: Beginning of the Year End of the Year (projected)
Assets $90,000 $100,000
Liabilities 30,000 30,000
Equity 60,000 70,000
Net Income 15,000

Your company is considering issuing 30 bonds at the end of the year (December 31st). The bonds will pay 8% interest semi-annually for 10 years and the market rate for similar bonds is 5%. Therefore, the total bond proceeds are $37,015.12. Calculate the following ratios with and without the bond issue.

a. ROE:
b. ROA:
c. Debit Ratio:
d. D/E:

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