1. A company with bond debt of 8-, lease obligation of 20, total assets of 1,000
ID: 2699132 • Letter: 1
Question
1. A company with bond debt of 8-, lease obligation of 20, total assets of 1,000 and total liabilities of 350 has a:
total debt ratio approx of
Debt-to-equity ratio of approx
Long-term debt ratio of approx
2. If Dotte's Door corporation merhes with its suppliers, Wally's wood its profit margil will
increse
decrease
increase but be offset by an increase turnover
increase but be offset by a decrease in turnover
3. Yahoo has enough liquid assets to finance its operations for 67 days and cash, marketable securities, and receivable totaling 1000. Yahoo averga daily expenditures from operations are?
4. When will ROE = ROC
if the firm has equal debt and equity
ROE will never be equal ROC
ifd the value of the firm's asset exceed the value of its equity
if the form has no interest payments on debt
Explanation / Answer
1. A company with bond debt of 8-, lease obligation of 20, total assets of 1,000 and total liabilities of 350 has a:
total debt ratio approx of = Debt/Assets = 350/1000=0.35
Debt-to-equity ratio of approx=Total Liab/Share Equity
= 350/(1000-350) = 350/650 = 0.54
Long-term debt ratio of approx = long term debt / total assets = (20+8)/1000 = 0.028
2. If Dotte's Door corporation merhes with its suppliers, Wally's wood its profit margil will
increase but be offset by a decrease in turnover
3. Yahoo has enough liquid assets to finance its operations for 67 days and cash, marketable securities, and receivable totaling 1000. Yahoo averga daily expenditures from operations are?
= 1000/67 = 14.93
4. When will ROE = ROC
if the firm has equal debt and equity
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