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If you have the debt assets after taxes percent of 10 percent cost of debt 8 percent and cost of equity 12 percent how is cost of capital calcuated?
Marye5
WACC = Cost of Debt * Weight of Debt = + Cost of equity * Weight of Equity WAAC = .08*.10 + .12*.90 WAAC = 10.88%
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What is the equity to assets ratio?
This ratio refers how much amount invested for fixed assets from equity. Formula for calulating this ration:- Fixed Assets/Equity(Capital+Reserves+Other accumilated Profits) If the Ratio is .75 ie 75%of Equity spend for Fixed Assets, Hence we can calculate working Capital of the Company
If a company has an Return on Assets of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent what is the company's total assets turnover and the equity multiplier?
Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.
What is a basic accounting equation?
Single proprietorship assets= liabilities + capital partnership assets= liabilities + partner's equity corporation assets= liabilities + shareholder's equity
Why Liability equals Assets - Owners Equity?
Because Assets equal to Liabilities plus Capital: ASSETS= LIABILITIES + CAPITAL This is a Mathematical equation, try to figure it out by your own.
What are the components of equity?
a) Shareholder's Equity = Share Capital + Retained Earnings - Treasury Shares or b) Shareholder's Equity = Assets - Liabilities
Is the owner's equity the same as the assets?
No. A Balance Sheet consists of Assets = Liabilities + Owner's Equity. Owner's Equity is increased by profits and contributed capital and is decreased by losses and capital withdrawals. Example of a very simplified Balance Sheet - Assets 150,000 Liabilities 50,000 Owner's Equity 100,000 Total 150,000
If your total assets is 420000 total liabilities 215000 paid in capital 75000 what is your retained earnings?
Assets = Liablilities + Equity (Equity = Paid in Capital + Retained Earnings) So, 420,000 - 215,000 - 75,000 = 130,000
Expanded accounting equation?
Assets =Liabilities +(Stockholders' Equity=Paid-in Capital + Revenues - Expenses - Dividends - Treasury Stock. )Assets =Liabilities +(Owner's Equity=Owner's Capital + Revenues - Expenses - Owner's Draws.)
If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
What is an example of an accounting equation?
Assets − Liabilities = (Shareholders or Owners equity or Capital)
For the following circumstances calculate the missing figure Owners Equity 100000 Liabilities 20000 Assets?
Assets= Capital+Liabilities So Assets=? Capital=100000 Liabilities=20000 Then Assets=100000-20000= 80000/-
How do you calculate owner's capital?
Answer:The owner's capital (or: equity) is the residual claim. It is calculated as assets minus liabilities.
