Business

Business, 16.10.2019 03:30, MissSusan183

Two operationally similar companies, hd and ld, have identical amounts of assets, operating income (ebit), tax rates, and business risk. company hd, however, has a much higher debt ratio than ld. company hd's return on invested capital (roic) exceeds its after-tax cost of debt, (1-t) r d. which of the following statements is correct

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Business, 21.06.2019 23:00, joannegrace869

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

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Business, 26.08.2019 22:10, jerseygirl1783

Companies hd and ld have identical amounts of assets, operating income (ebit), tax rates, and business risk. company hd, however, has a much higher debt ratio than ld. company hd’s basic earning power ratio (bep) exceeds its cost of debt (rd). which of the following statements is correct? a. company hd has a higher return on assets (roa) than company ld. b. company hd has a higher times interest earned (tie) ratio than company ld. c. company hd has a higher return on equity (roe) than company ld, and its risk, as measured by the standard deviation of roe, is also higher than ld’s. d. the two companies have the same roe. e. company hd’s roe would be higher if it had no debt.

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Business, 25.10.2019 18:43, 911wgarcia

Companies hd and ld have identical amounts of assets, operating income (ebit), tax rates, and business risk. company hd, however, has a higher debt ratio than ld. company hd's basic earning power ratio (bep) exceeds its cost of debt (r). which of the following statements is correct? a)company hd has a higher return on assets (roa) than company ld.b)company hd has a higher times interest earned (tie) ratio than company ld.c)company hd has a higher return on equity (roe) than company ld, and its risk as measured by the standard deviation of roe is also higher than ld's.d)the two companies have the same roe.e)company hd's roe would be higher if it had no debt.

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