Q: Describe the Ratios that show how a firm uses debt financing?
A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…
Q: Users of Financial Statement. how debt is helpful
A: There are three major financial statement of a company. These are profit and loss statement, balance…
Q: Discuss how the change in the Debt service changed analysis (i.e. how did it change the property…
A: Debt service includes interest and principal amount paid in any year for the loan obtained. That is,…
Q: rate Income tax rate beta ury instrument rate ted return on market portfolio rating for the debt…
A: Given information : Corporate income tax rate 45% Asset beta 1.2 Treasury rate 6% Expected…
Q: Explain Classifications of Debt Investments.
A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…
Q: State the advantages of long-term debt financing.
A: Long Term Debt Financing: It refers to the debt financing required by the firm which usually has a…
Q: Define Debt-to-equity ratio
A: Debt to equity ratio is an important ratio which is used by the companies in order to determine the…
Q: in a page long or 2 define debt and equity financing and the advantages and disadvantages of both.…
A: Applying for a loan from a lender is what debt entails. It can be temporary, long-term, or…
Q: Indicate how to present and analyze long-term debt.
A: Long-term debt of a company includes the amount of money which is borrowed by the company from…
Q: Discuss the difference between debt securities market and equity securities market.
A: The Debt securities market refers to the market which trades in debt that has to be repaid to the…
Q: Explain restructuring (of debt terms)
A: Debt restructuring It is a system that organizations use to get away from the risk of default on…
Q: Explain an example of debt investment.
A: Debt Investment Debt Investment is refer as when the company raises the money by selling the debt…
Q: Explain or illustrate before-tax cost of debt and after-tax cost of debt.
A: In finance the cost of debt is the effective rate that a company pays on its debt. A company can…
Q: What is Debt to equity ratio of PETRON?
A: The formula for the calculation of debt equity ratio is as follows: Debt equity ratio=Debt Equity
Q: Interest expense should be calculated based on interest rates and debt balances and by using a trend…
A: Interest expense is the amount paid periodically on the borrowed amount. The borrowed amount can be…
Q: Differentiate equity financing from debt financing.
A: Finance is the term used for funding, raising or investing in the various business activities. For a…
Q: Explain the roles of debt and equity financing new industries.
A: Debt Financing: Debt financing that entails issuing stock to lift money. Debt funding happens once…
Q: What is Debt to equity ratio of JFC? Note: please don’t use excel and show your solution.
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: Define the terms "debt security" and "equity security." Include comparisons and contrasts in your…
A: Introduction: Securities: To raise money from the public or private markets, securities are the…
Q: Define long-term debt
A:
Q: traditional debt and alternative financing instruments f
A: Entrepreneurs refer to a person who is establishing a business for taking financial risks and…
Q: Explain principal (debt)
A: Debt is the amount owed by the company for a particular period from the date of the company's…
Q: Define Debt Issue Costs.
A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…
Q: eme
A: Introduction : Financial modelling is a mathematical framework of a business's activities in the…
Q: Define bonds discount and give an example.
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: Explain Collateralized Debt Obligations (CDOs)?
A: A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a…
Q: All things considered stable cash flows enable higher debt borrowing.
A: Cashflows: These are movement of the money from various sources like operations, investment…
Q: Define the term debt ratio.
A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…
Q: Define troubled debt restructuring.
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: What is the significance of credit/debt ratings
A: Credit Ratings: Credit Rating is an estimate of the borrower (be it a person, organization, or…
Q: Give some examples of debt financing?
A: Following are some examples of debt financing: Whereas, Debentures are a corporate or government…
Q: Explain required rate of return on debt
A: Debt is some amount of money owed by a borrower to the creditor. Debt can be two types. One is…
Q: Define debt ratio
A: Ratio refers to the relationship between the two quantities which shows the quotient of one divided…
Q: Define and discuss the importance of both Debt Markets and Equity Markets (both primary and…
A: Debt Market: A debt market is a financial market where debt instruments are traded. Such type of…
Q: Describe Debt Investments to Be Held to Maturity.
A:
Q: Debt: Debt can be sold at an interest Determine the cost of each capital structure component. •…
A: WACC: It is the cost of capital of the business for raising the different sources of capital. It is…
Q: Define debt service requirements
A: Debt service requirement is very much essential for a company if it wants to maintain a good credit…
Q: Discuss how a form of debt can be classified as both Current and Long-Term Liabilities. Why do…
A: Long Term Liabilities are the liabilities that become due for more than one year. They are the…
Q: What is Debt Securities Market?
A: The debt market is the place where the investments in debts or loans are traded. The participants in…
Q: Financial leverage is the gage of using the- in financial structure ---- -- Debts Loans Both of…
A: Financial Leverage refers to the use of borrowed funds in total capital of the organization, for…
Q: REQUIREMENTS: 1. How much is the cost of equity using the capital asset pricing model? 2. How…
A: Cost of Equity represents the expected return by the shareholders of the company.It can be…
Q: Calculate Debt-to-equity Times interest earned Return on Financial leverage
A: Debt to equity=Outsiders' FundsShareholders' Funds 2019 2018 2017 2016 36,683,0008,573,000=4.28…
Q: Debt to equity ratio
A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…
Q: Explain why a long term creditor should be interested in liquidity ratios. Include some examples or
A: Introduction : In simple word, the liquidity of a business refers to the amount of cash or easily…
Calculate market value of debt
use excel please
Step by step
Solved in 3 steps with 2 images
- Particulars As on 31.3.2019(Rupees. In Lacs)As on 31.3.2020(Rupees. In Lacs)Investment in FinancialAssets- 100Equity Share Capital 150 160Long term Loans taken 100 200Dividend paid - 26Dividend received - 10Interest received - 15 Calculate the debt-equity ratio & commentThe following are the Financial Statements of Louise Company: Loulse Company Statement of Financial Position As of December 31, 2015, and 2016 2015 2016 ASSETS Current Assets Cash Accounts Receivables, net Merchandise Inventory Marketable Securities 198,000 30,000 15,000 20,000 10,000 273,000 270,000 40,000 10,000 20,000 8.000 348,000 Prepaid Expenses Total Current Assets Non-Current Assets Land Building, net Machinery, net Fumiture and Fixtures, net Long-term Investments Total Non-Current Assets 500,000 390,000 100,000 50,000 100,000 L140.000 500,000 380,000 90,000 45,000 80,000 1,095,000 TOTAL ASSETS 1413.000 1.443.000BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 What is the firms ROE (Return on Equity)?Group of answer choices 9.45% 9.63% 9.84% 10.20%
- BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 Question 9 What is the firm's Debt Ratio? Group of answer choices 60.0% 65.0% 70.0% 75.0% Question 10 What is the firm's Inventory Turnover? 4.41 4.55 4.69 4.83 Question 11 What is the firm's DPS…BALANCE SHEETCash $ 140.0 Accounts payable $ 800 .0Accts. receivable 880 .0 Notes payable 600.0Inventories 1,320.0 Accruals 400 .0Total current assets $2,340.0 Total current liabilities $1,800.0Long-term bonds 1,000.0Total debt $2,800.0Common stock 200 .0Retained earnings 1,000.0Net plant & equip. 1,660.0 Total common equity $1,200.0Total assets $4.000.0 Total liabilities & equity $4.000.0lNCOME STATEMENTNet sales $6,000.0Operating costs 5,599.8Depreciation 100.2EBIT $ 300.0Less: Interest 96 .0EBT $ 204 .0Less: Taxes 81.6Net income $ 122.4OTHER DATAAnnual Principal and Lease Payments 0.00Shares outstanding (millions) 60 .00Common dividends (millions) $42.8Interest rate on NIP and long-term bonds 6.0 %Federal plus state income tax rate 40%Year-end stock price $30 .60 Question 5 What is the firm's EBITDA coverage? Group of answer choices 3.51 3.69 3.88 4.17 Question 6 What is the firms DSO (Days Sales Outstanding)? Group of answer choices 51.30 days 52.80 days 53.50…Liabilities Liquid assets Monthly credit payments Monthly savings $ 8,800 $ 5,000 24668 $ 150 Net worth Current liabilities Take-home pay Gross income $ 59, 000 $ 1,350 $ 2,600 2,900 a. Debt ratio b. Current ratio
- Calculate net debt. Cash and cash equivalents Short term borrowings Long term borrowings Commercial paper (liability) Capital / finance lease Accounts receivable Total liabilities Inventory Select one: 2,108.0 2,103.0 2,025.0 14,132.0 3,176.0 419.0 2,883.0 331.0 1,651.0 83.0 17,308.0 5.0Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% %$4 1700 8% Fixed rate $500 9% $1500 5% Non earning $ 5100 $. 1800 Equity 1900 Total $ 6900 $6900 What is the Net Interest Margin (NIM)Consider the Föllowing balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1900 7% %$4 1300 9% Fixed rate $ 500 9% %$4 1900 6% Non earning $ 2700 %$4 800 Equity 1100 Total $ 5100 $ 5100 What is the Net Interest Income (NII)
- The financial statements of Stone Limited for the most recent two years is shown below. Extract from statement of profit or loss for the year ended 30 April 2019 2018 £'000 £'000 224,000 195,000 (169,200) (136,500) 54,800 58,500 (32,700) (38,040) (10,900) (12,680) (1.900) 9,300 Revenue Cost of sales Gross profit Administrative costs Distribution cost Finance cost-loan note interest Statement of financial position as at 30 April. Assets Non-current assets Current assets: Inventory Trade receivables Cash balance Total assets Equity and liabilities Ordinary share capital Retained earnings £'000 2019 12,800 24,600 1,600 £'000 37,000 39,000 76,000 16,000 26,200 42,200 (1.380) 6,400 2018 £'000 £'000 28,600 9,800 21,600 2,400 33,800 62.400 16,000 18,600 34,600Required journal entries Total cash payment = 500000*10%*1/2 = $25, 000 Discount on bonds payable = (10240/64) *4 = $640 My question is the formula of the Total cash payment and Discount on bonds payable.PROBLEM 8:Tomas Co. has the following balance sheet as of December 31, 2021.Current assets 180,000.00Fixed assets 120,000.00Total assets 300,000.00Accounts payable 40,000.00Accrued liabilities 20,000.00Notes payable 50,000.00Other Long-term debt 75,000.00Total Equity 115,000.00Total liabilities and equity 300,000.00 In 2021, Tomas Co. reported sales of P1,500,0000, net income of P30,000, and dividends of P18,000. The company expected its sales to increase by 20% by next year and its retention ratio will remain at 40%. Assume that Tomas Co. is operating at full capacity and it uses the AFN approach in determining the amount of external financing needed.How much is the sales for 2022? Using Problem 8, how much is the increase in retained earnings for the purpose of computing the AFN? Using Problem 8, how much external funds needed for the year 2022?