Edwards enterprises follows a moderate current asset investment policy, but it is now considering a change, perhaps to a restricted or maybe to a relaxed policy. the firm's annual sales are $400,000; its fixed assets are $100,000; its target capital structure calls for 50% debt and 50% equity; its ebit is $39,000; the interest rate on its debt is 10%; and its tax rate is 40%. with a restricted policy, current assets will be 15% of sales, while under a relaxed policy they will be 25% of sales. what is the difference in the projected roes between the restricted and relaxed policies?
Answers: 2
Business, 21.06.2019 19:40, Jasten
Bear, inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. they have, and desire, a 25% ending inventory of finished goods. each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. the remainder is received in the quarter following sale. cash collections for the third quarter are budgeted at
Answers: 3
Business, 22.06.2019 15:00, samanthamunevar7218
Which of the following is least likely to a team solve problems together
Answers: 1
Business, 22.06.2019 20:00, LJ710
Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?
Answers: 2
Edwards enterprises follows a moderate current asset investment policy, but it is now considering a...
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