Which ratio measures the percentage of company's assets that are financed by debt?
A. Return on investment
B. Debt to equity
C. Debt to assets ratio
D. Asset turnover
Answer: C
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JIT is a philosophy concerned with
a. when to do something. b. how to do something. c. where to do something. d. how much of something should be done.
Billington Corp borrows $80,000 cash from Second National Bank. How does this transaction affect the accounting equation for Billington?
A. Assets would increase $80,000 and equity would decrease $80,000. B. Assets would decrease $80,000 and equity would increase $80,000. C. Liabilities would decrease $80,000 and equity would increase $80,000. D. Assets would decrease $80,000 and liabilities would decrease $80,000. E. Assets would increase $80,000 and liabilities would increase $80,000.
A firm is most likely to rely on customer relationship management (CRM) approaches when it does not have a database of information on individual customers.
Answer the following statement true (T) or false (F)
Topsy Breweries Inc, a UK brewer headquartered in Turvey, is all equity financed and generates perpetual annual EBIT of $800. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year
Topsy has 2,000 shares outstanding which trade for $4.00. The stockholders of Topsy require a return of 7%. Topsy is considering an open market stock repurchase. It plans to buy 15% of its outstanding shares at a price of $4.188. The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds with a coupon rate (and yield) of 4%. Assume that the tax rate is 30%. What is the price of Topsy shares after the repurchase (PA)? A) PA = $4.00 B) PA = $4.05 C) PA = $4.09 D) PA = $4.14 E) PA = $4.19