Tau Inc. has sales of $392,510, a debt-equity ratio of 1.2, and a profit margin of 8.5 percent. What is the equity multiplier? 2.4 2.2 0.2 1.4
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Question A
Tau Inc. has sales of $392,510, a debt-equity ratio of 1.2, and a profit margin of 8.5 percent. What is the equity multiplier?
2.4
2.2
0.2
1.4
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- How do the shareholders who own a company choose the actual company managers?Horton plc, an all-equity firm, is proposing to convert its all-equity capital structure to one that is 50 per cent debt. Frank is a shareholder in the firm and he prefers the all-equity capital structure. There are no corporate taxes, and firms and individuals can borrow/lend at the same rate. If Horton does go ahead with the conversion, Frank could and use them/the proceeds replicate the payoffs of Horton with the all equity capital structure. so as to What are the missing words? а. borrow money + to buy shares in Horton b. borrow money + to buy bonds (lend) C. sell Horton shares + to buy shares in an all equity firm d. buy more Horton shares + as collateral е. sell Horton shares + to buy bonds (lend)3. The Ajax Corporation has the following set of projects available to it: PROJECT INVESTMENT EXPECTED RATE OF REQUIRED (SMILLIONS) RETURN (%) A 500 23.0 75 18.0 C 50 21.0 125 16.0 E 300 14.0 F 150 13.0 250 19.0 Ajax can raise funds with the following marginal costs: First $250 million 14.0% Next 250 million 15.5 Next 100 million 16.0 Next 250 million 16.5 Next 200 million 18.0 Next 200 million 21.0 Use the marginal cost and marginal revenue concepts developed in the chapter to derive an optimal capital budget for Ajax.
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- e SUAL 21 40 QEYD ET financing is money raised from within the firm, from operations or through the sale of ownerhsip in the firm (stock). CAVAB Debt Long-term Bullshit Equity Əvvəlki Növbəti Bütün suallar Qeyd olunanlar Cari Vəziyyət 82°F Sunny Ca ) AZE 15:18 18.06.2021 TOSHIBAHelp Save Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is provided in the table below: Unregulated Subsidiary Regulated Subsidiary Total $ 650,000 N/A revenue $ 350,000 $300,000 $1,000,000 $ 100,000 Total costs Total profit If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at Instructions: Enter your responses as a whole number. (a) The unregulated subsidiary? profit = $ (b) The regulated subsidiary? profit = $ & 23 24 8. *00 w/ %S4e. 0 10 20 11 12 13 14 15 16 17 18 19 20 $160,000 ▼ $160,000 V
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