Fill in the table using the following information. Assets required for operation: $10,000 Firm A uses only equity financing Firm B uses 40% debt with an 8% interest rate and 60% equity Firm C uses 50% debt with a 12% interest rate and 50% equity Firm D uses 50% preferred stock financing with a dividend rate of 12% and 50% equity financing Earnings before interest and taxes: $1,500 If your answer is zero, enter "0". Round your answers for monetary values to the nearest cent. Round your answers for percentage values to one decimal place. B D Debt Preferred stock Common stock $ 2$ $1,500.00 $1,500.00 $1,500.00 $1,500.00 Earnings before interest and taxes Interest expense $ $ 2$ Earnings before taxes 2$ Taxes (40% of earnings) 5 Preferred stock dividends $ Income available to common stockholders $ Return on common stock % % % LLL LLL LL %24 %24 %24 %24 LLL %24 %24 %24 %24

Fill in the table using the following information. Assets required for operation: $10,000 Firm A uses only equity financing Firm B uses 40% debt with an 8% interest rate and 60% equity Firm C uses 50% debt with a 12% interest rate and 50% equity Firm D uses 50% preferred stock financing with a dividend rate of 12% and 50% equity financing Earnings before interest and taxes: $1,500 If your answer is zero, enter "0". Round your answers for monetary values to the nearest cent. Round your answers for percentage values to one decimal place. B D Debt Preferred stock Common stock $ 2$ $1,500.00 $1,500.00 $1,500.00 $1,500.00 Earnings before interest and taxes Interest expense $ $ 2$ Earnings before taxes 2$ Taxes (40% of earnings) 5 Preferred stock dividends $ Income available to common stockholders $ Return on common stock % % % LLL LLL LL %24 %24 %24 %24 LLL %24 %24 %24 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fill in the table using the following information. Assets required for operation: $3,800 Case A-firm uses only equity financing Case B firm uses 30% debt with a 10% interest rate and 70% equity Case C-firm uses 50% debt with a 12% interest rate and 50% equity If your answer is zero, enter "O". Round your answers for monetary values to the nearest cent. Round your answers for percentage values to one decimal place. A B C Debt outstanding $ 2$ Stockholders' equity 3 Earnings before interest and taxes $608.00 $608.00 $608.00 Interest expense $ $ Earnings before taxes $ 24 $ Taxes (40% of earnings) $ $ $ Net earnings $ Return on stockholders' equity % % %24 %24 %24 %24 %24 %24 %24 %24 %24
Proforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the company is planning pay $500 dividends, what should be the external financing needs (EFN)? Assets $20,972.80 Debt Equity $20,972.80 Total Total Proforma Balance Sheet Multiple Choice O O -$208.8. $208.8. $500. $291.2. -$500. $11,000.00 $10,181.60 $21,181.60
Proforma balance sheet for the upcoming year is given. The estimated net income is $2,621.60. If the company is planning to pay $500 dividends, what should be the external financing needs (EFN)? Proforma (Balance Sheet Assets $20,972.80 Total $20,972.80 )(Debt $11,000.00 Equity $10,181.60 Total $21,181.60) Multiple Choicea. -$208.8.b. $291.2.c. $208.8.d. $500.e. -$500.
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Particulars As on 31.3.2019(Rupees. In Lacs)As on 31.3.2020(Rupees. In Lacs)Investment in FinancialAssets- 100Equity Share Capital 150 160Long term Loans taken 100 200Dividend paid - 26Dividend received - 10Interest received - 15 Calculate the debt-equity ratio & comment