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

Author Question: Last year, Swensen Corp. had sales of $421,800, operating costs of $302,300, and year-end assets of ... (Read 85 times)

parker123

  • Full Member
  • ***
  • Posts: 137
on: Aug 7, 2023
Last year, Swensen Corp. had sales of $421,800, operating costs of $302,300, and year-end assets of $256,000. The debt-to-total-assets ratio was 30%, the interest rate on the debt was 9%, and the firm’s tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 48% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. By how much would the ROE change in response to the change in the capital structure?

◦

11.65%


◦

12.11%


◦

13.50%


◦

14.02%

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 parker123 on Aug 7, 2023

sin

  • Full Member
  • ***
  • Posts: 165
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 44% of students answer this correctly


parker123

  • Member
  • Posts: 137
Reply 2 on: Aug 7, 2023
Excellent

xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

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?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

On May 15, 1916, after deliberating for one hour, an all-white jury in Waco, Texas, found seventeen- On May 15, 1916, after deliberating for one hour, an all-white jury in Waco, Texas, found seventeen-
The hatred and vengeance of adults become the children’s heritage. The headband of this 4-year-old ... The hatred and vengeance of adults become the children’s heritage. The headband of this 4-year-old ...
A Receiver-Operating-Characteristic (ROC) Curve A Receiver-Operating-Characteristic (ROC) Curve
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ... Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ...
Video: Membrane Protein and Facilitated Transport (Passive Vs Active)

For a complete list of videos, visit our video library