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 93 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
YES! Correct, THANKS for helping me on my review

31809pancho

  • Member
  • Posts: 317
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Examples of Health Care Plans Examples of Health Care Plans
Management of Opioid Adverse Effects Management of Opioid Adverse Effects
Top Eleven Countries in Year 2009 According to Three Different Measures Top Eleven Countries in Year 2009 According to Three Different Measures
Use a graphical method to find the length of the loan to the nearest year Use a graphical method to find the length of the loan to the nearest year
Data management short answer q Data management short answer q
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Appendicitis Animation

For a complete list of videos, visit our video library