Last year rosenberg corp. had $265,000 of assets, $18,775 of net income, and a debt-to-total-assets ratio of 32%. 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?
Answers: 2
Business, 21.06.2019 13:30
The outstanding bonds of the purple fiddle are priced at $898 and mature in nine years. these bonds have a 6 percent coupon and pay interest annually. the firm's tax rate is 35 percent. what is the firm's after tax cost of debt?
Answers: 3
Business, 22.06.2019 00:00
Which part/word/phrase in the passage refers to a business’s financing activity seen in a cash flow statement? nathan works as an accountant in a footwear manufacturing company. he is currently preparing the cash flow statement for his employer. during the given accounting period, the company purchased raw materials worth $25,000. it also bought new equipment worth $75,000 to increase its production output. further, it borrowed a long-term bank loan of $100,000 to facilitate further expansion. finally, the company spent $50,000 on advertising its latest brand of footwear in the market. {lol i guessed its "it borrowed a long-term bank loan of $100,000 to facilitate further expansion" and thats correct}
Answers: 1
Business, 22.06.2019 06:30
Double corporation acquired all of the common stock of simple company for
Answers: 2
Business, 22.06.2019 09:00
According to this excerpt, a key part of our national security strategy is
Answers: 2
Last year rosenberg corp. had $265,000 of assets, $18,775 of net income, and a debt-to-total-assets...
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