Mba 5924

.(#1 orchestrate B) line of work risk say: d Diff: E .(#2 pee B) gravid expressionAnswer: a Diff: E N .(#3 Form B) Capital structure, ROA, and hard roeAnswer: d Diff: E N Statements a and b are represent; therefore, asseve proportionalityn d is the appropriate choice. ROA = NI/TA. If perfect assets stop the same, barely NI decreases (because of the forward-looking interestingness payment), ROA entrust decrease. NI ordain fall, but not as much in similitude to the amount that common beauteousness will fall, therefore ROE = NI/CE will rise. BEP will uphold the same. BEP = EBIT/TA, where TA and EBIT remain the same. .(#4 Form B) Optimal capital structureAnswer: d Diff: M .(#5 Form B) tether sign theory predictionsAnswer: b Diff: M .(#6 Form B) understand bellAnswer: e Diff: E EBIT = PQ - VQ - FC $95,000 = P(55,000) - (0.4)P(55,000) - $110,000 $205,000 = (0.6)(55,000)P $205,000 = 33,000P P = $6.21. .(#7 Form B) Breakeven bellAnswer: a Diff: E sum up costs = $10,000 + $2(42,000) = $94,000. toll = $94,000/42,000 = $2.24. .(#8 Form B) in the earthy financingAnswer: a Diff: M Old debt ratio = 0.3333; newfangled debt ratio = 0.1667. = 7.5. TA = = $100,000. Debt = 0.3333($100,000) = $33,330. New TA = $100,000 + $100,000 = $200,000. New Debt = $200,000(0.1667) = $33,340.

Altmans current debt of $33,330 represents approximately 16.67% of total assets chase the expansion, thus the menage should finance with 100 percentage equity. .(#9 Form B) win over in breakeven raftAnswer: b Diff: M deem the old and new breakeven volumes apply the old info and new projections: Old QBE = $120,000/($1.20 - $0.60) = $120,000/$0.60 = 200,000 units. New QBE = $240,000/($1.05 - $0.41) = $240,000/$0.64 = 375,000 units. tack in breakeven volume = 375,000 - 200,000 = 175,000 units. .(#10 Form B) Capital structure and stock expenseAnswer: b Diff: T N First, calculate the stock price for each debt level using the dividend growth model, P0 = D1/(kS - g). Debt...If you want to perish a full essay, cabaret it on our website: Orderessay

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