what is the book value per share for a firm with 2 million shares outstanding at a price of $50, a market-to-book ratio of 0.75, and a dividend-payout ratio of 50%?
which one of the following will increase a firm's times interest earned ratio?
what is the book value per share for a firm with 2 million shares outstanding at a price of $50, a market-to-book ratio of 0.75, and a dividend-payout ratio of 50%? , The book value per share for a firm with 2 million shares outstanding at a price of $50, a market-to-book ratio of 0.75, and a dividend-payout ratio of 50% would be $25. This book value per share is calculated by adding up all of the company's intangible, tangible, and financial assets and then dividing by the number of shares outstanding. The market-to-book ratio is used to compare the current market value of a stock to its book value. A market-to-book ratio of 0.75 means that the stock is trading at 75% of its book value. The dividend payout ratio is the percentage of a company's earnings that are paid out as dividends to shareholders. A dividend payout ratio of 50% means that for every $1 in earnings, $0.50 will be paid out as dividends.
which one of the following will increase a firm\'s times interest earned ratio?
Assuming all else is held constant, which of the following will increase a firm's times interest earned ratio? A. An increase in EBITDA B. A decrease in total debt C. An increase in the interest rate on debt D. A decrease in interest expense The answer is A. An increase in EBITDA will increase a firm's times interest earned ratio.
investment is style if analogous to animals
challenge question i tyler wants to buy a beach house as part of his investment portfolio. after searching the coast for a nice home, he finds a house with a great view and a hefty price of $4,500,000. tyler will need to borrow from the bank to pay for this house. mortgage rates are based on the length of the loarn and a local bank is advertising fifteen-year loans with monthly payments at 7.125%, twenty-year loans with monthly payments at 7.25%, and thirty-year loans with monthly payments at 7.375%. what is the monthly payment of principal and interest for each loan? tyler believes that the property will be worth $5,500,000 in five years. ignoring taxes and real estate commissions, if
an asset turnover ratio of 1.75 can be interpreted as:
If the asset turnover ratio is low as compared to the industry or past years of data for the firm, it means that sales are not keeping up with the level of assets. This could be due to a number of factors, including inefficiency in operations, or simply a lack of demand for the company's products or services. If the asset turnover ratio is high, it indicates that the company is generating a lot of sales from its assets, which is generally considered to be a good thing. However, it is important to keep in mind that a high asset turnover ratio can also be a sign that a company is over-leveraged and may be at risk of financial problems down the road.
if a firm\'s quick ratio is equal to its current ratio:
A company's quick ratio is a measure of its liquidity and its ability to pay off its short-term debt. If a company's quick ratio is equal to its current ratio, it means that the company is able to pay off all of its current liabilities with its current assets. This is a good sign for the company, as it shows that it is financially healthy and has the ability to meet all of its obligations.
what is the debt ratio for a firm with a debt-equity ratio of 0.5 quizlet
The debt ratio for a firm with a debt-equity ratio of 0.5 quizlet is the percentage of total assets that are financed by borrowed money. This ratio is used to give an indication of the financial risk of a company. A high debt ratio means that a large part of the financing of the company's assets comes from borrowed money, which can put the company at risk if it is unable to make its loan payments. A low debt ratio, on the other hand, indicates that the company has a strong financial position and is less likely to default on its loans.
if the cash coverage ratio exceeds the times interest earned ratio, then the firm has:
If the cash coverage ratio exceeds the times interest earned ratio, then the firm has a strong financial position and is able to cover its debts.
to calculate which of these measures do you need to know the cost of capital?
The cost of capital is the minimum rate of return that a company must earn on its investments to satisfy its shareholders. The cost of capital includes the cost of equity and the cost of debt. To calculate the cost of capital, you need to know the amount of equity and debt as well as income tax. The cost of borrowing can be calculated using the interest rate that the company being valued has to pay to lenders. In terms of the cost of capital, a distinction must first be made between the borrowing costs that the company has to pay to banks or other financiers. A capital cost rate is used to calculate the expenses for borrowed capital. It results from the sum The cost of capital for equity is a fictitious figure. But they are no less important for a company. The missing: measures | flow as imputed interest Must include:Looking more closely, you can use this key figure in corporate management to determine the average cost In order to raise capital and remain solvent,the
which of these assets is generally considered to be the most liquid?
Cash is generally considered to be the most liquid asset because it is the quickest and easiest to exchange with other assets. This is due to the fact that cash is the most liquid asset and can be exchanged for other assets very easily.
a firm has a debt-equity ratio of 0.45 what is the total debt ratio
Assuming that the firm has a debt-equity ratio of 0.45, this would imply that the firm's total debt ratio is 45%. In other words, the firm has more debt than equity, and its creditors have a greater claim on its assets than its shareholders. This higher level of debt can be seen as a source of financial risk for the firm, as it may have difficulty meeting its obligations if economic conditions deteriorate. However, it can also be seen as a source of financial strength, as it can provide the firm with additional funding for growth or expansion.