Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $355,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm’s tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt ratio. Assume that sales, operating costs, total assets, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure?
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Last Year Essex Manufacturing Paid 3500 For Utilities This Year The Company Used 1
/in Uncategorized /by developerLast year Essex Manufacturing paid $3500 for utilities. This year the company used energy-saving techniques to reduce the utility bills by 13% of last year’s cost. What was the cost of utilities for Essex Manufacturing this year?
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Last Year Essex Manufacturing Paid 3500 For Utilities This Year The Company Used
/in Uncategorized /by developerLast year Essex Manufacturing paid $3500 for utilities. This year the company used energy-saving techniques to reduce the utility bills by 13% of last year’s cost. What was the cost of utilities for Essex Manufacturing this year?
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Last Year Hamdi Corp Had Sales Of 500 000 Operating Costs Of 450 000 And Year En 1
/in Uncategorized /by developerLast year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $355,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm’s tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt ratio. Assume that sales, operating costs, total assets, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure?
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Last Year Hamdi Corp Had Sales Of 500 000 Operating Costs Of 450 000 And Year En
/in Uncategorized /by developerLast year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $350,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm’s tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt ratio. Assume that sales, operating costs, total assets, and the tax rate would not be affected, but the interest rate would rise to 8.0%. By how much would the ROE change in response to the change in the capital structure?
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Last Year Hubert Bought A House In Hanover For 100 000
/in Uncategorized /by developerLeverage ratio, please help!
Last year Hubert bought a house in Hanover for $100,000. Suppose that Hubert paid $50,000 as a down payment and took out a mortgage loan of $50,000 to cover the remaining amount.
Hubert’s simple leverage ratio is ___________. Suppose that the price of the house falls by 4%. If Hubert sells his house now, his capital loss will be _________. ( Ignore selling costs and maintenance.) A 4% fall in the price of the house causes a percentage loss of ______ in Hubert’s equity.
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Last Year Jandik Corp Had 365 000 Of Assets 18 750 Of Net Income And A Debt To T
/in Uncategorized /by developerLast year Jandik Corp. had $365,000 of assets, $18,750 of net income, and a debt-to-total-assets ratio of 37%. Now suppose the new CFO convinces the president to increase the debt ratio to 48%. Sales and total assets will not be affected, but interest expenses would increase. However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. By how much would the change in the capital structure improve the ROE?
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Last Year Joban Graduated From High School And Received A 5 000 As A Graduation 1
/in Uncategorized /by developerLast year, Joban graduated from high school and received a $5,000 as a graduation gift from his uncle. He just heard a guy in his dorm who invested in a software company and made a huge profit in a few months. Joban is considering investing his $5,000 in the company. Joban has trouble managing his money and has a large balance on his credit card. Joban has a part-time job, but spends all of the money he earns. He also does not understand how investing works.
What advice would you give to Joban?
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Last Year Joban Graduated From High School And Received A 5 000 As A Graduation
/in Uncategorized /by developerLast year, Joban graduated from high school and received a $5,000 as a graduation gift from his uncle. He just heard a guy in his dorm who invested in a software company and made a huge profit in a few months. Joban is considering investing his $5,000 in the company. Joban has trouble managing his money and has a large balance on his credit card. Joban has a part-time job, but spends all of the money he earns. He also does not understand how investing works.
What advice would you give to Joban?
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Last Year Pepe S Tacoshopshowed 850 000 In The Common Stock Account On Thebalanc
/in Uncategorized /by developerLast year Pepe’s Taco Shop showed $850,000 in the common stock account on the Balance Sheet along with $5.95 million in the additional paid-in surplus account. This year the Balance Sheet shows $835,000 and $8.7 million in the same two accounts, respectively. The current Income Statement also reports the company paid out $550,000 in cash dividends and $500,000 in interest. What was the cash flow to stockholders for the year?
A) $2,185,000
B) $285,000
C) $8,985,000
D) $300,000
E) -$2,185,000
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Last Year S Freshman Class At Big State University Totaled 5 346 Students 01 Tho
/in Uncategorized /by developerLast year’s freshman class at Big State University totaled 5,346 students. 01’ those. 1,262 received a merit scholarship to help offsettuition costs their freshman year {although the amount varied per student]. The amount a student received was M$3.443. $450]. If thecost of full tuition was $4,200 last year, what percentage of students who received a merit scholarship did not receive enough to cover full tuition? (Round your answer to the nearest IIlIlIhole percent.) Percentage of students %
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