subject
Business, 16.03.2020 20:16 anabellabenzaquen

Last year, Candle Corp had $250 of assets, $300 of sales, $20 of net income, and a liability-to-asset ratio of 40%. Now suppose the new CFO convinces the president to increase the liability-to-asset ratio to 50%. 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

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 16:30
What is the purpose of government health care programs
Answers: 1
question
Business, 22.06.2019 13:50
Read the following paragraph, and choose the best revision for one of its sentences.dr. blake is retiring at the end of the month. there will be an unoccupied office upon his departure, and it is big in size. because every other office is occupied, we should convert dr. blake’s office into a lounge. it is absolutely essential that this issue is discussed at the next staff meeting. (a) because every other office is occupied, it’s recommended that we should convert dr. blake’s office into a lounge. (b) because every other office is filled, we should convert dr. blake’s office into a lounge.
Answers: 2
question
Business, 23.06.2019 00:00
What is a sales lead? a. an employee on the customer service team who deals with existing customers b. a sales person who works on a residual commission structure c. an expert in maslow's hierarchy of needs d. a potential customer who has shown interest in the company's product
Answers: 1
question
Business, 23.06.2019 01:00
Gideon company uses the allowance method of accounting for uncollectible accounts. on may 3, the gideon company wrote off the $2,000 uncollectible account of its customer, a. hopkins. on july 10, gideon received a check for the full amount of $2,000 from hopkins. on july 10, the entry or entries gideon makes to record the recovery of the bad debt is
Answers: 1
You know the right answer?
Last year, Candle Corp had $250 of assets, $300 of sales, $20 of net income, and a liability-to-asse...
Questions
question
Mathematics, 09.07.2019 06:00
question
Biology, 09.07.2019 06:00