Business
Business, 31.03.2020 03:27, matthi4687

Assume that Atlas Sporting Goods Inc. has $980,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 15 percent, but with a high-liquidity plan the return will be 12 percent. If the firm goes with a short-term financing plan, the financing costs on the $980,000 will be 9 percent, and with a long-term financing plan, the financing costs on the $980,000 will be 11 percent.

a. Compute the anticipated return after financing costs with the most aggressive asset-financing mix. Anticipated return $
b. Compute the anticipated return after financing costs with the most conservative asset-financing mix. Anticipated return $
c. Compute the anticipated return after financing costs with the two moderate approaches to the asset-financing mix. Anticipated Return Low liquidity $ High liquidity $

d. If the firm used the most aggressive asset-financing mix described in part a and had the anticipated return you computed for part a, what would earnings per share be if the tax rate on the anticipated return was 30 percent and there were 20,000 shares outstanding? (Round your answer to 2 decimal places.) Earnings per share $

e-1. Now assume the most conservative asset-financing mix described in part b will be utilized. The tax rate will be 30 percent. Also assume there will only be 5,000 shares outstanding. What will earnings per share be? (Round your answer to 2 decimal places.) Earnings per share $

e-2. Would the conservative mix have higher or lower earnings per share than the aggressive mix? Lower Higher

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 02:00, getse61
Ineed : ): will mark brainliest! describe sinek's golden circle. what does he use this for? sinek argues that "people don't buy 'what' you do; people buy 'why' you do it." what does he mean by this? do you agree or disagree with him? why? what are the advantages of hiring people who share the same beliefs and visions in terms of the company's 'why' or purpose? why wasn't tivo successful as a company? what is the difference between leaders and those who lead? how does safety contribute to trust and cooperation? what are some ways that leaders can make the company environment safe? what are the advantages of companies where employees feel safe and protected?
Answers: 2
image
Business, 22.06.2019 11:20, ebt2367
Money aggregates identify whether each of the following examples belongs in m1 or m2. if an example belongs in both, be sure to check both boxes. example m1 m2 gilberto has a roll of quarters that he just withdrew from the bank to do laundry. lorenzo has $25,000 in a money market account. neha has $8,000 in a two-year certificate of deposit (cd).
Answers: 3
image
Business, 22.06.2019 17:20, shakira11harvey6
Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?
Answers: 1
image
Business, 22.06.2019 20:30, absports
Identify the level of the literature hierarchy for u. s. gaap to which each item belongs
Answers: 1
Do you know the correct answer?
Assume that Atlas Sporting Goods Inc. has $980,000 in assets. If it goes with a low-liquidity plan f...

Questions in other subjects:

Konu
Mathematics, 21.10.2019 21:00