year Rosenberg Corp.had $195,000 of assets, $18,775 of net income, and a debt-to-total-assets ratio of 32%.Now suppose the new CFO convinces the president to increase the debt ratio to 48%.Sales and total assets will not be affected, but interest expenses would increase.However, the CFO believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged.By how much would the change in the capital structure improve the ROE?
A) 4.36%
B) 4.57%
C) 4.80%
D) 5.04%
E) 5.30%
Correct Answer:
Verified
Q62: is the firm's BEP?
A) 6.00%
B) 6.32%
C) 6.65%
D)
Q63: is the firm's profit margin?
A) 1.40%
B) 1.56%
C)
Q66: is the firm's EPS?
A) $5.84
B) $6.15
C) $6.47
D)
Q69: is the firm's inventory turnover ratio?
A) 4.38
B)
Q70: is the firm's ROE?
A) 8.54%
B) 8.99%
C) 9.44%
D)
Q72: is the firm's TIE?
A) 1.94
B) 2.15
C) 2.39
D)
Q74: is the firm's debt ratio?
A) 45.93%
B) 51.03%
C)
Q75: is the firm's cash flow per share?
A)
Q89: year Altman Corp.had $205,000 of assets, $303,500
Q93: Muscarella Inc.has the following balance sheet and
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