child psychology paper 2September 26, 2021
** I have attatched the excel document this must be done on**
The Effect of Leverage on Firm Earnings
A firm needs $100 to start and has the following expectations:
Sales
$200
Expenses
$185
Tax rate
33% of earnings
a. What are earnings if the firm owners invest the $100 thus utilizing no financial leverage? Tax and net earnings values should be rounded to 2 decimal places.
b. If the firm borrows (utilizes financial leverage) $40 of the $100 at an interest rate of 10%, what are the firm’s net earnings? Tax and net earnings values should be rounded to 2 decimal places.
c. What is the return on equity when financial leverage is and is not utilized? Why do the returns differ? ROE results should be shown with 2 decimal places.
d. If expenses increase to $194, what will be the new return on equity values for each scenario? ROE results should be shown with 2 decimal places.
e. Did the returns decline more when financial leverage was or was not utilized?
f. How does the use of financial leverage effect a firm’s earnings? When is using financial leverage beneficial? When is it disadvantageous?
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!Use Discount Code “Newclient” for a 15% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
The post effect leverage firm earnings appeared first on Essay Writers.
“Is this question part of your assignment? We Can Help!”
WE’VE HAD A GOOD SUCCESS RATE ON THIS ASSIGNMENT. PLACE THIS ORDER OR A SIMILAR ORDER AND GET AN AMAZING DISCOUNT
The post effect leverage firm earnings | nursinganswers.org – Essay Furious appeared first on essayfurious.com.
The post effect leverage firm earnings | nursinganswers.org – Essay Furious first appeared on essaypanel.com.
