This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be ... (Read 16 times)

Dannyrod2

  • Full Member
  • ***
  • Posts: 160
on: Aug 7, 2023

Question 1

Pace Corp.’s assets are $730,000, and its total debt outstanding is $202,000. The new CFO wants to employ a debt ratio of 60%. How much debt must the company add, without changing total assets, to achieve the target debt ratio?

◦

$217,082


◦

$225,311


◦

$236,000


◦

$240,050



Question 2

Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be $386,000, operating costs to be $291,000, assets to be $300,000, and its tax rate to be 33%. Under Plan A it would use 30% debt and 70% common equity. The interest rate on the debt would be 9%, but the TIE ratio would have to be kept at 5 or more. Under Plan B the maximum debt that met the TIE ratio constraint would be employed. Assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the ROE change in response to the change in the capital structure?

◦

27.40%


◦

28.62%


◦

29.55%


◦

30.05%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Dannyrod2 on Aug 7, 2023

wangyichun

  • Full Member
  • ***
  • Posts: 179
Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 57% of students answer this correctly


Dannyrod2

  • Member
  • Posts: 160
Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

frankwu0507

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

The carbon cycle. Numbers are storage as 1015 g or fluxes as 1015 g per year (data from Schlesinger The carbon cycle. Numbers are storage as 1015 g or fluxes as 1015 g per year (data from Schlesinger
Light rays coming from an object to the retina. Light rays coming from an object to the retina.
Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe
Operations Management question: Operations Management question:
Management of Opioid Adverse Effects Management of Opioid Adverse Effects
Prepare for weekend plans when hours feel like minutes Prepare for weekend plans when hours feel like minutes
Video: Ear Virtual Tour Animation

For a complete list of videos, visit our video library