subject
Business, 20.02.2020 22:32 emmadivaburnsox7ae9

Last year Jandik Corp. had $325,000 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?a. 2.19%b. 1.67%c. 1.57%d. 1.94%e. 2.17%

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 19:20
Anderson, a computer engineer, and spouse, who is unemployed, provide more than half of the support for their child, age 23, who is a full-time student and who earns $7,000. they also provide more than half of the support for their older child, age 33, who earns $2,000 during the year. how many dependents may the andersons claim on their joint tax return?
Answers: 3
question
Business, 21.06.2019 21:30
Big trail running company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. they feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. based on research the following information was gathered for the upcoming year: machining department finishing department estimated manufacturing overhead by department $ 600 comma 000 $ 400 comma 000 trail running shoes 440 comma 000 machine hours 11 comma 000 direct labor hours running apparel 60 comma 000 machine hours 39 comma 000 direct labor hours manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. at the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: machining department finishing department trail running shoes 442 comma 000 hours 10 comma 500 hours running apparel 57 comma 000 hours 40 comma 000 hours how much manufacturing overhead will be allocated to the trail running shoes
Answers: 3
question
Business, 22.06.2019 08:00
In addition to using the icons to adjust page margins, a user can also use
Answers: 1
question
Business, 22.06.2019 10:30
On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?
Answers: 2
You know the right answer?
Last year Jandik Corp. had $325,000 of assets, $18,750 of net income, and a debt-to-total-assets rat...
Questions
question
Computers and Technology, 16.11.2020 18:30
question
Arts, 16.11.2020 18:30
question
Mathematics, 16.11.2020 18:30
Questions on the website: 13722360