Kermit's hardware's (kh) fixed operating costs are $20.8 million and its variable cost ratio is 0.30. the firm has $10 million in bonds outstanding with a coupon interest rate of 9%. kh has 200,000 shares of common stock outstanding. the firm has revenues of $32.2 million and its marginal tax rate is 40%. compute kh's degree of total leverage. a. 26.8 b. 5.5 c. 29.1 d. 4.7

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ

Financial information that is capable of making a difference in a decision is

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?