Question
In: Finance
Q14: Compare the financial leverage ( i.e., measured by total debt ratio = total debt /...
Q14: Compare the financial leverage ( i.e., measured by total debt ratio = total debt / total assets) for Microsoft (high-tech), Target (retail) , and Citibank (bank).
Q15. How to estimate a firm’s optimal capital structure?
Q30: What are accruals? Are a firm’s accruals free or not? Why?
Solutions
Expert Solution
Q14:
total debt ratio = total debt / total assets
Microsoft
total debt ratio = 78,366,000 / 286,556,000 = 27.35%
Target
total debt ratio = 13,974,000 / 42,779,000 = 32.67%
Citi
total debt ratio = 293,809,000 / 1,951,158,000 = 15.06%
jeff jeffy answered 1 year agoRelated Solutions
QUESTION: The financial leverage multiplier is the ratio of the firm's total assets to stockholders' equity....
QUESTION:
The financial leverage multiplier is the ratio of the firm's total
assets to stockholders' equity.
ANSWER OPTIONS:
True
False
Please specifically state IN THE SUBJECT LINE if the
answer is TRUE or FALSE. Further, discussions should not
simply be a restatement of other comments made by students who have
previously posted. It is also important to know that if students
include the question in their answer response, they should be aware
that said text will NOT be included in...
QUESTION: The financial leverage multiplier is the ratio of the firm's total assets to stockholders' equity....
QUESTION: The financial leverage multiplier is the ratio of the
firm's total assets to stockholders' equity.
ANSWER OPTIONS: True False You need to specifically state IN THE
SUBJECT LINE if the answer is TRUE or FALSE.
EXAMPLES OF INADEQUATE RESPONSES: “I think the answer is False.”
OR “The correct answer is “C.”
Postings must be no less than 200 words in length to be
considered. Any posting less than 200 words in length will not be
reviewed.
14-4 a. For Company LL (Low Leverage), the total assets is $20,000,000, Debt ratio is 30%,...
14-4 a. For Company LL (Low Leverage),
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return on equity (ROE)? ROE = Net Income / Equity
20,000,000x30%=600,000
Fro Company HL (High Leverage), the
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is 12%, tax rate is 40%, and EBIT is $4,000,000. What’s HL’s return
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b. IF Company...
Prepare the period's financial statements and calculate the following primary financial ratio: Debt Ratio Total Liabilities...
Prepare the period's financial statements and calculate
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Current Ratio
Current Assets / Current Liabilities
Working Capital
Current Assets - Current Liabilities
Assets-to-Equity Ratio
Total Assets / Owner's Equity
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why capital structure debt is called leverage ? compare debt leverage and earning per share
why capital structure debt is called leverage ? compare debt
leverage and earning per share
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Fincher, Inc., has a total debt ratio of .19. What is its
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Total Debt Ratio
0.19
Debt-Equity Ratio
Equity Multiplier
03.07 DuPont Identity If jPhone, Inc., has an
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Equity Multiplier
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Total Asset Turnover
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Profit Margin
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ROE
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Debt ratio for Walgreens = Total Liabilities /
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What do the results of this ratio mean in the
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What is the general relationship among operating leverage, financial leverage, and the total leverage of the...
What is the general relationship among operating leverage,
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