Which of the following statements is correct? a. the use of debt financing will tend to lower the basic earning power ratio, other things held constant. b. if two firms have identical sales, interest rates paid, operating costs, and assets, but differ in the way they are financed, the firm with less debt will generally have the higher expected roe. c. all else equal, increasing the debt ratio will increase the roa. d. a firm that employs financial leverage will have a higher equity multiplier than an otherwise identical firm that has no debt in its capital structure.
Answers: 1
Business, 22.06.2019 18:30
Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?
Answers: 1
Business, 22.06.2019 19:10
Pam is a low-risk careful driver and fran is a high-risk aggressive driver. to reveal their driver types, an auto-insurance company a. refuses to insure high-risk drivers b. charges a higher premium to owners of newer cars than to owners of older cars c. offers policies that enable drivers to reveal their private information d. uses a pooling equilibrium e. requires drivers to categorize themselves as high-risk or low-risk on the application form
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Business, 22.06.2019 21:00
Reagan corporation is a wholesale distributor of truck replacement parts. initial amounts taken from reagan's records are as follows:
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Business, 23.06.2019 07:50
Tubby toys estimates that its new line of rubber ducks will generate sales of $7.60 million, operating costs of $4.60 million, and a depreciation expense of $1.60 million. if the tax rate is 35%, what is the firm’s operating cash flow? (enter your answer in millions rounded to 2 decimal places.)
Answers: 1
Which of the following statements is correct? a. the use of debt financing will tend to lower the ba...
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