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Last year Altman Corp. had $205,000 of assets, $303,500 of sales, 418,250 of net income, and a debt-to-total assets ratio of 41%.
Last year Altman Corp. had $205,000 of assets, $303,500 of sales, 418,250 of net income, and a debt-to-total assets ratio of 41%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $152,500. Sales, costs, and net income would not be affected, and the firm would maintain the 41% debt ratio. By how much would the reduction in assets improve in ROE?Edwards Electronics recently reported $11.250 of sales, $5,500 of operating costs other than depreciation, and $1250 of depreciation. The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its 35% income tax. What is the net cash flow?What is the bond's nominal (annual) coupon interest rate. $1000 per value, mature in 25 years, nominal yield to maturity is 9.25%, semiannually and sell at a price of $850.What is the current stock price, P0? a dividend of $0.75 per share, 5.50% constant rate per year in the future, beta 1.15, market risk premium 5%, risk free rate is 4.00%I would like for you to give my the formulas, show the steps, and the answer. Thanks