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Debt Ratio

Calculate maximum debt ratio; Debt outstanding for Stewart; ROE for Muscarella

1. A new firm is developing its business plan. It will require $565,000 of assets, and it projects $452,800 of sales and $354,300 of operating costs for the first year. Management is quite sure of these numbers because of contracts with its customers and suppliers. It can borrow at a rate of 7.5%, but the bank requires it to h

Analysis a choice of restaurants to buy: Shadracks or Brighams

See attached file. You and your best friend have decided to quit your jobs, turn in your retirement, and purchase your own restaurant. In your market area there are a lot of restaurants, and you've looked at several that were available for sale. You have narrowed your choices to either Shadracks or Brighams. From you and your

Ratio and Financial Planning

Ratio and Financial Planning at East Coast Yachts: After Dan's analysis of East Coast Yacht's cash flow (at the end of our previous chapter), Larissa approached Dan about the company's performance and future growth plans. First, Larissa wants to find our how East Coast Yachts is performing relative to its peers. Additionally

Growth Rates/Ratios

B) Calculate earnings and dividend growth rates for three companies ( Hit Edelman's EPS growth rate is 8%. g Calculate dividend payout ratios for all three companies both yrs ( Edelman's 2007 payout ratio 50%. h. Calculate debt/total assets ratios for all three companies (Edelman's 2007 debt ratio 55%0 i) Calculate P/E ratios

Dental Innovations, Inc: prepare ratio analysis

See attached file. The comparative financial statements of Dental Innovations Inc. are attached. The market price of Dental Innovations Inc. common stock was $15 on December 31, 2008. For dollar amounts, round to the nearest cent. 1. Working capital $ 2. Current ratio 3. Quick ratio 4. Accounts rec

Calculate BEP, price per share, TIE ratio, new quick ratio

4-1 Duval Manufacturing recently reported the following information: Net income $ 600,000 ROA 8% Interest expense $ 225,000 Duval's tax rate is 35%. What is its basic earning power (BEP)? 4-2 You are given the following information: Stockholders' equity ¼ $3.75 billion, price/ earnings ratio ¼ 3.5, common shares outstanding

Home Depot: Compute and analyze debt ratio and debt to equity ratio.

Balance Sheet and Market Value of Your Company's Liabilities and Equity Refer to your company's most recent balance sheet (the Home Depot). Review the 'liabilities and equity side' of the balance sheet. (a) Short term liabilities (or debt) and long term liabilities Find out from the balance sheet of the company the tot

Debt-Equity Ratio

Hardmon Enterprises is currently an all equity firm with an expected return of 12%. It is considering a leveraged recapitalization in which it would borrow and repurchase existing shares. a)Suppose Hardman borrows to the point that its debt-equity ratio is 0.50 With this amount of debt, the debt cost capital is 6%. What will

Solvency, Depreciation, Capitalization/Expensing

1. How is the ratio of liabilities to stockholder's equity related to solvency? 2. What is the purpose of depreciation and why are there so many methods? 3. What is the principle defining whether you capitalize or expense an acquisition? 4. Given this distinction, how do capitalized items become appropriately expensed? 5. W

Memo to your superior analyzing the performance of SAC

Write a memo to your superior analyzing the performance of SAC for 2005 and 2006. This analysis should be based on the information found in the consolidated financial statements. Download Click here for the 2005 and 2006 financial information. Your memo should include the following financial ratios and a comparison of th

Event likely to encourage a company to raise its target debt ratio

Which of the following events is likely to encourage a company to raise its target debt ratio? a. An increase in the corporate tax rate. b. An increase in the personal tax rate. c. An increase in the company's operating leverage. d. Statements a and c are correct. e. All of the statements above are correct. Pl

Calculate debt/equity ratio for a healthcare company, Pfizer

If a company (healthcare) is publicly traded, review the company's most recent audited balance sheet and calculate its debt/equity ratio. If the company is not public, choose a public company in healthcare or any other industry and calculate its most recent debt/equity ratio.

Williams Glassware: EPS and optimal debt ratio, coefficient of variation, graph

Williams Glassware has estimated, at various debt ratios, the expected earnings per share and the standard deviation of the earnings per share as shown in the attached table. a) estimate the optimal debt ratio on the basis of the relationship bewtween earnings per share and debt ratio. You will probably find it helpful to gra

Calculate the Debt-Equity Ratio for Firm Y

Firm Y has a cost of equity of 16.5 percent and a pre-tax cost of debt of 7.4 percent. The firm's target weighted average cost of capital is 11.5 percent and its tax rate is 34 percent. What is the firm's target debt-equity ratio? 1. .58 2. .62 3. .67 4. .71 5. .76

Review annual reports for a publicly held company

Dear Vineet Swarup, Please see the attached file and help me to answer these 2 questions. Thank you 1. Without crossing the line in terms of confidentiality, share with us a financial item (Balance Sheet related) that changed significantly from 2006 to 2007 or 2005 to 2006, review annual reports for a publicly held comp

Debt ratio/Common Cost Equity

Equity Multiplier of 3.71. Assets are financed with combined common equity and long term debt. Debt ratio? Stock sells at 71 per share. Just paid dividends of 2.12. Dividend anticipated to increase constant rate of 5.5 per yr. Stock price one year from now? Common stock is presently trading @ 17% per share. Expecte

Brick Brewing Co. and Fort Garry Brewing Company Ltd.

Hello, I am hoping I can seek assistance from the OTA's in looking at the data, and writing a BRIEF synopsis of how these 2 companies are doing compared to each others five year averages. I have attached the excel spreadsheet, and the info is located on the bottom of the ratio sheet. I would like to seperate the analys

You calculate the debt-to-equity ratio to be 3:2.

You calculate the debt-to-equity ratio to be 3:2. From this you conclude that the following percentage of Publix's assets are funded with debt: a. 60% b. 150% c. 66.7% d. Cannot be determined from the information given

Debt Ratio Firms

A firm has an equity multiplier of 3.71. The firm's assets are financed with some combination of common equity and long-term debt. What's the firm's debt ratio?