Ramos Land Management has a target debt - to - value ratio of .45. The pretax cost of debt is 7.4 percent, the assumed tax rate is 24 percent, and the unlever cost of equity 14.3 percent. What is the target cost of equity? Multiple Choice 20.71 percent 17.18 percent 16.66 percent 17.86 percent 18.59 percent
Q: i need the answer quickly
A: Answer:- Depreciation is the decrement in the value of tangible assets due to the wear and tear…
Q: You find the following Treasury bond quotes. To calculate the number of years until maturity, assume…
A: Yield to MaturityYield to Maturity (YTM) is a measure used to evaluate the potential return of a…
Q: Example: A receipt,
A: 1] Double-entry bookkeeping, also known as double-entry accounting, is a method of bookkeeping that…
Q: If Able Ltd, registered for GST, purchased inventory from a supplier for $9 000 (excluding GST),…
A: The objective of the question is to calculate the amount of discount received by Able Ltd when it…
Q: Brown Corp had a projected benefit obligation of $3,000,000 and plan assets of $2,500,000 at January…
A: Non-wage remuneration given to employees in addition to their regular income or wages is known as…
Q: 17. A company manufactures a single product. Cost and selling price data for the product are as…
A: Margin of safety means the difference between the budget sales and breakeven sales. It means the…
Q: If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is…
A: The objective of the question is to calculate the amount of cash received from the sale of bonds.…
Q: Down Under Products' sales budget for the next four months is as follows: April May June July Unit…
A: Production budget:A production budget refers to the budgetary analysis of estimating the number of…
Q: Paul, Inc. owns 75% of the voting stock of Booker Corp., and the two companies are consolidated in…
A: Under the consolidation method, a parent company combines its own revenue with 100% of the revenue…
Q: Required: a) Prepare Lorato’s updated cash book for June 30 2018 b) Prepare Lorato’s bank…
A: Bank Reconciliation Statement is prepared by an organization to match the balances of cash book as…
Q: PROBLEM I The current asset section of the statement of financial position prepared by the…
A: Current assets are a company's short-term assets; those that can be liquidated quickly and used for…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Income statement is a statement which shows the operating income of the firm for an accounting…
Q: Answer the following question, giving detailed examples to justify your answer;- Based on the book…
A: The convergence of international accounting standards represents a pivotal movement in the global…
Q: i need the answer quickly
A: Bank reconciliation is the process of comparing a company's records of its financial transactions…
Q: Benson Company manufactures special metallic materials for luxury homes that require highly skilled…
A: Standard hours required = units produced × Hours required per unit. Direct labor efficiency variance…
Q: Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $289,000.…
A: Equity method is an accounting method wherein the investment is initially recognized at cost and…
Q: Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine…
A: Part 1: Calculation of Income Tax Payable/Refundable for Each Partner for 2022Step 1: Determine the…
Q: Zing Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of…
A: It is the process of making decisions that involve the management of costs in order to achieve…
Q: i need the answer quickly
A: Contribution margin = Selling price - Variable costTotal variable cost = variable manufacturing…
Q: Posting to the general ledger from the special journals should be done at the end of the month. True…
A: Ledger -Accounting ledgers store and handle a company's financial information derived from journal…
Q: Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and…
A: Shareholder's EquityThe amount available for the shareholders in the company is called shareholder's…
Q: Problem 6-7 As the chief financial officer of Adirondack Designs, you have the following…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: Logan Products has two production departments-assembly and finishing. These are supported by two…
A: There are three methods of allocating costs of multiple shared service department;The direct method…
Q: Davis Company produces two hair dryers: regular and deluxe. The company has four activities:…
A: In order to assess how well a company is performing financially, ratio analysis examines the…
Q: Calculate the operating and cash cycles.
A: The operating cycle measures the time it takes for a company to convert its inventory into cash…
Q: Sell of Process Further Rose Hill, a soybean farm in northern Minnesota, has a herd of 25 dairy…
A: Break-even point for a company is that level of output where the company is in a no profit no loss…
Q: Sunland Corporation had a projected benefit obligation of $3,323,000 and plan assets of $3,561,000…
A: Amortization -Amortization is the process of distributing or allocating a long-term liability's or…
Q: The Shooting Company recognized $109,000 of service revenue earned on accou during Year 2. There was…
A: INCOME STATEMENTIncome statement is one of the important financial statements of the Company. Income…
Q: 4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained…
A: Adjusted Trial Balance: This is a list of the balances of general ledger accounts after making the…
Q: Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires…
A: Cash BudgetThe estimates of cash receiving and cash payments for the future accounting periods are…
Q: Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate…
A: Company calculates predetermine overhead rate in order to allocate overhead to the job. It is…
Q: Draw the flow chart for the following - manual based(NOTE: add files, data store and departments…
A: To illustrate the manual-based process described, I will create a flowchart including departments,…
Q: Smiley Company wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…
A: Journal entries refer to the recording of the business activities into the books of accounts or into…
Q: H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup…
A: Standard costing is the process adopted by the company to estimate the expenses incurred in the…
Q: Molten Works Ltd provides the following information about departmental consumption of allocation…
A: Factory overhead means the cost which is incurred in factory but not directly linked with…
Q: Lynch Company manufactures and sells a single product. The following costs were incurred during the…
A: The contribution margin is calculated as the difference between sales and variable costs. The gross…
Q: TASK 5 Tardy Pty Ltd, a corporate tax entity, has the following transactions for the 2022/23 income…
A: The objective of the question is to prepare the franking account for Tardy Pty Ltd for the 2022/23…
Q: i need the answer quickly
A: The return on assets ratio depicts the percentage of net income achieved on the company's average…
Q: Required information PR 9-42 (Algo) Preparation of Master Budget (LO 9-3, 9-4, 9-5) [The following…
A: We need to follow the steps to prepare a production overhead budget as follows: -Step 1: Computing…
Q: The transactions of Belle Company’s appear below.D. Belle created a new business and invested $6,700…
A: T-accountT-accounts are the ledger accounts provided for each line item in the company transactions.…
Q: Ever since Newton Inc. was formed on Jan. 1, 2022, the company has had the following outstanding…
A: A dividend is a portion of a company's profits and retained earnings that it pays to its…
Q: Net credit sales for the month are $800 000. The accounts receivable is $160 000. The allowance is…
A: The Allowance for Doubtful Debts, also known as the Allowance for Bad Debts or Provision for…
Q: The nswer for this entry keeps showing as wrong. I am not sure where I am going wrong.
A: Entry C1: To record the adjustment for the subsidiary stock transaction:Explanation:…
Q: 1. Coffee Company had the following adjusting entries at the end of the year:Depreciation expense…
A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.The…
Q: Exercise 10-3 (Reacquisition of Shares through Donation) In 2014, the Jolo Company issued 150,000…
A: The objective of the question is to record the receipt of the donated shares and their subsequent…
Q: Sheffield Industries had the following inventory transactions occur during 2027: Units Cost/unit…
A: The difference between the sales and the cost of goods sold is called gross profit. Gross profit…
Q: 不 Bryson Inc. collects cash from customers two ways: 1. Accrued Revenue. Some customers pay Bryson…
A: Journal Entry :- It is an act of recording transactions in books of account when transaction…
Q: Q5. Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a…
A: The break-even point is the point where the total cost and total revenue of a given are equal, hence…
Q: Required: Use the reciprocal method to allocate the service department costs to the production…
A: Cost allocation is the process of assigning or distributing the costs to different business units,…
Q: During the year, Wright Company sells 550 remote-control airplanes for $100 each. The company has…
A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…
AJ.2
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a. 34% b. 50% c. 44% d. 37% 2. Holding all other variables constant, which of the following would increase return on equity? An increase in _____________. a. the tax rate b. the equity ratio (equity/total assets) c. total assets d. total asset turnoverCalculate to the following for Pharmos considering its tax rate of 25 percent.i. Total Market Value for the Firmii. After-tax cost of Loaniii. After-tax cost of Bondsiv. Cost of Equityv. Cost of Preferred Stockvi. Weighted Average Cost of Capital (WACC)If the return on asset (ROA) is 10%, the pre-tax cost of debt is 8%, and the corporate tax rate is 20%. What will the return on equity (ROE) be if the capital structure is 60% equity and 40% debt? Group of answer choices 10% 13.6% 9% 12.4%
- Where do we generally find optimal level of debt? A. where the tax shield is maximized B. the amount of debt such that the YTM is 5.5% or less C. where debt equals equity D. whatever will yield a FICO sore of 700 or better E. consistent with a low investment grade debt ratingThe Saw Mill has a return on assets of 6.1 percent, a total asset turnover rate of 1.8, and a debt-equity ratio of 0.6. What is the return on equity? Group of answer choices 9.76 percent 15.86 percent 19.03 percent 4.26 percent 12.28 percentThe Doll House has a pre-tax cost of debt of 7.9 percent and a return on assets of 11.7 percent. The debt-equity ratio is 0.45. Ignore taxes. What is the cost of equity? A- 13.41 percent B- 12.98 percent C- 12.47 percent D-12.03 percent E-11.87 percent
- Use attachment to answer the following Required: a. Calculate return on common equity and disaggregate ROCE for Years 5 and 9 using end-of-year values for com- putations requiring an average (assume fixed assets and working capital are operating and a 50% tax rate). b. Comment on Texas Telecom’s use of financial leverage.Calculate the Weighted Average Cost of Capital (WACC) for McCormick and Company using the formula WACC = (WD x RD x (1-T)) + (WS x Rs) Note that -- Rs = the cost of equity Rd = the cost of debt T = the tax rate WD = Value of debt / (Value of debt plus value of equity) WS = Value of equity / (Value of debt plus value of equity) **Note that the weight of debt plus the weight of equity must total to 100%, as there are only two components in the capital structure.** In order to estimate the weights of debt and equity in the total capital structure, the CFO suggests using the book value of debt and the market value of equity. To determine the book value of debt, use data from the year end November 2019 McCormick 10-K. Look on the Balance sheet and add the following -- Short term borrowings, Current portion of long term debt, and Long term debt. To determine the market value of equity, use the following data: On March 17, 2020 the market value of equity (or "Market Cap")…Suppose the weighted average cost of capital of the Oriole Company is 10 percent. If Oriole has a capital structure that is 50 percent debt and 50 percent equity, its before-tax cost of debt is 7 percent, and its marginal tax rate is 20 percent, then its cost of equity capital is closest to: a. 10.40 percent. b. 12.40 percent. c. 8.40 percent. d. 14.40 percent.
- Consider the following two independent investment opportunities that are available to Lion, Inc. The appropriate discount rate is 11.7%. Project X Project Y Year 0 1 2 3 $-1,272 544 941 860 $-2.162 909 2,194 1,302 What is the Profitability Index of project Y? (Round answer to 2 decimal places. Do not round intermediate calculations)Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decima) places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)The Tree House has a pretax cost of debt of 6.1 percent and a return on assets of 10.4 percent. The debt–equity ratio is .39. Ignore taxes. What is the cost of equity?