Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem1: Burger Corp has 500,000 dollar of assets, and it uses only common equity capital [zero debt]. Its sales for the last year were $600,000, & its net income after taxes was 25,000 dollar. Stockholders recently voted in a new management team that has assured to lower costs & get the return on equity up to 15 percent. Determine the profit margin would Burger need in order to achieve the 15 percent ROE, holding everything else constant?

[A] 11.00%

[B] 12.50%

[C] 14.00%

[D] 8.00%

[E] 9.50%

problem2: Rex Corp's EBITDA last year was 385,000 dollar (= EBIT + depreciation + amortization), its interest charges were dollar 10,000, it had to repay dollar 25,000 of long term debt, and it had to make a payment of $20,000 under a long term lease. The firm had no amortization charges. find out the EBITDA coverage ratio?

[A] 7.91

[B] 8.25

[C] 8.42

[D] 7.36

[E] 7.69

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M919847

Have any Question? 


Related Questions in Basic Finance

1 do you think renovation is more or less risky than a new

1. Do you think renovation is more or less risky than a new investment? 2. What is meant by the incremental cost of refinancing? 3. In general, what kinds of tax incentives are available for rehabilitation of real estate ...

Company a has inventory equal to 100000 with a current

Company A has inventory equal to $100,000 with a current ratio of 2.3 and quick ratio of 1.8, what is the level of the firms current liabilities?

Name the industrywith this case a comparison is made

NAME THE INDUSTRY With this case, a comparison is made between three firms in different industries using net profit margin, total asset turnover and current ratio. 1. Apple Fiscal year 2010 ended September 25, 2010, and ...

Enter the home page of the careers in business web site

Enter the home page of the Careers in Business Web site (http://www .careers-in-business.com), and page through the finance positions listed and their corresponding salaries. What skill sets or job characteristics lead t ...

The fine garments company sells fashion clothing the

The Fine Garments Company sells fashion clothing. The forecasted annual demand for their premium leather jacket is 2,000. The order-processing cost per order is $40, and the inventory holding cost is $35/item/year. How m ...

Class investmentstopic term structure of interest rates

CLASS: Investments TOPIC : Term Structure of Interest Rates: Expectations Theory: Forward and SpotRates. QUESTION: Given the yield on a 7 year zero-coupon bond is 7%, yield on a 2 year strip is 5%, and forward two-year r ...

The following list contains several variables that

The following list contains several variables that differentiate college students. a. Select one variable from the list and then think of a second variable (on the list or one of your own) that should be positively relat ...

1 what are the techniques by which experimenters attempt to

1. What are the techniques by which experimenters attempt to control extraneous variables within an experimental design? 2. What methods are used to help ensure that experiments are internally valid? 3. How are manipulat ...

Als sport store has sales of 2720 costs of goods sold of

Al's Sport Store has sales of $2,720, costs of goods sold of $2,080, inventory of $516, and accounts receivable of $426. How many days, on average, does it take the firm to sell its inventory assuming that all sales are ...

M banking assignmentstudy guide for essay questions

Money Banking Assignment Study guide for essay questions. Compiled from questions your colleagues submitted. 1) What are the main functions of: a) the Federal Reserve (details of how the Fed performs its functions, prima ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro