Post a New Question

college

posted by .

A firm has a debt to asset ratio of 75%, $240,000 in debt, and net income of $48,000. Calculate return on equity.

  • college -

    26.6%

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. finance part 2

    11. Whit a Subchapter S corporation A. corporate income is taxed as directed income to stockholders B. stockholders have the same liability as members of a partnership C. the number of stockholders is unlimited D. life of the corporation …
  2. finance

    Firm L has debt with a market value of $200,000 and a yield of 9%. The firm's equity has a market value of $300,000, its earnings are growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of …
  3. Corporate Finance

    Organic Chicken Company has a debt-equity ratio of .65. Return on assets is 8.5 percent, and total equity is $540,000. what is the net income ?
  4. Finance

    1. Firm L has debt with a market value of $200,000 and a yield of 9%. The firm's equity has a market value of $300,000, its earnings are growing at a rate of 5%, and its tax rate is 40%. A similar firm with no debt has a cost of equity …
  5. Finance

    Recreational Supplies Co. has net sales of $9,191,375, an ROE of 31.02 percent, and a total asset turnover of 2.42 times. If the firm has a debt-to-equity ratio of 0.76, what is the company’s net income?
  6. Finance

    A firm with 50% debt to equity ratio has a cost of equity capital of 15%, a cost of debt of 9% and a tax rate of 33%. The firm is considering a project costing 5,000 that will generate an annual cash flow of 1,000 for the next 8 years. …
  7. accounting

    Acme Inc. has total liabilities of $120,000, total sales of $80,000, net income of $12,000, current assets of $90,000 and total assets of $150,000. What is the debt to equity ratio for Ac
  8. Finance

    Steve's ski shop has a net income of $389,000 with total sales of $2.5 million. Currently, the shop has debt of $500,000, equity of $800,000; receivables are 1.5 percent of sale, and Average total assets of $2,000,000. What is the …
  9. Business, Accounting

    A firm has a debt to equity ratio of 50%, debt of $300,000, and net income of $90,000. The return on equity is a. 60% b. 15% c. 30% d. not enough information
  10. Finance

    Your company, Martin Industries, Inc., has experienced a higher than expected demand for its new product line. The company plans to expand its operation by 25% by spending $5,000,000 for an additional building. The firm would like …

More Similar Questions

Post a New Question