Question

what is the common stock earning leverage ratio?

what is the common stock earning leverage ratio?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A leverage ratio refers to a type of financial ratio that depicts the debt level incurred by a company against several other accounts in the income statement, cash flow statement or balance sheet. The common stock earning leverage ratio is computed as total debt divided with the common stock. It helps to evaluate the business entity's solvency and capital structure. Debt to equity ratio is computed as interest bearing liability divided with the total shareholder's equity.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
what are the formulas a. Current Ratio b. Leverage Ratio (financial leverage) c. Gross Profit (Gross...
what are the formulas a. Current Ratio b. Leverage Ratio (financial leverage) c. Gross Profit (Gross Margin on the site) d. Return on Equity e. Return on Assets f. Return on Sales h. Asset Turnover I.Inventory Turnover
Leverage and the cost of capital. The common stock and debt of Northern Sludge are valued...
Leverage and the cost of capital. The common stock and debt of Northern Sludge are valued at $70 million and $30 Million,respectively. Investors currently require a 16% return on the common stock and an 8% return on the debt. Assume that the change in capital structure does not affect the interest rate on Northern’s debt and that there are no taxes. a. If Northern Sludge issues an additional $10 million of common stock and uses this money to retire debt,...
if the following amounts were given, assets equal $95,000, common stock equals $45,000 and retained earning...
if the following amounts were given, assets equal $95,000, common stock equals $45,000 and retained earning equal $26,000 what is the balance for liabilities? if the following amounts were given, assets equal $105,000 liabilities equal $55,000 and retained earning equal $20,000 what is the balance for common stock?
What is price-earning ratio? When and why do we use P/E ratio?
What is price-earning ratio? When and why do we use P/E ratio?
What does price-to-earning ratio tell us about a firm?
What does price-to-earning ratio tell us about a firm?
A firm has a tax burden ratio of 0.8, a leverage ratio of 2, an interest...
A firm has a tax burden ratio of 0.8, a leverage ratio of 2, an interest burden of 0.6, and a return on sales of 8%. The firm generates $3 in sales per dollar of assets. -What is the firm's ROE? - What is the firm's compound leverage factor? - Does the company increase its ROE by using loans? How one can see that?
What is the company's financial leverage or FLEV ratio (to three decimal places) if it has...
What is the company's financial leverage or FLEV ratio (to three decimal places) if it has an RNOA of 11.1%, a ROCE of 15.3% and its net borrowing cost is 4.2%?
A leverage ratio is any one of several financial measurements that look at how much capital...
A leverage ratio is any one of several financial measurements that look at how much capital a firm holds in relation to its total assets. For our purposes we define the bank's leverage ratio as equity capital divided by total assets.* Go to the St. Louis Federal Reserve FRED database, and find data on assets less liabilities, i.e. bank capital (RALACBM027SBOG), and total assets of commercial banks(TLAACBM027SBOG). Starting in January 1995, for each monthly observation, calculate the bank leverage ratio....
Historical Expectational Valuation Stock NPM ATO Leverage Current Ratio 5 Year Historical Growth 3 Month Percentage...
Historical Expectational Valuation Stock NPM ATO Leverage Current Ratio 5 Year Historical Growth 3 Month Percentage Change FY1 3 Months Percentage Change Rec # of Quarter Surprises in 5 Quarters Average Positive Surprises in 5 Quarters P/E P/S Peg TGT 4.22 0.45 0.91 0.82 -0.39 1.85% 1.16% 3/5 2.66% 15.31 0.64 2.73 WMT 1.02 0.62 0.72 0.93 1.3 -0.62% -4.17% 4/5 2.48% 54.35 0.55 3.39 Historical Expectational Valuation Stock NPM ATO Leverage Current Ratio 5 Year Historical Growth 3 Month...
1. A bank had a leverage ratio of 12.5 at the end of January. In February,...
1. A bank had a leverage ratio of 12.5 at the end of January. In February, bankís capital decreased by 10 percent, but bankís liabilities remained the same. In March, bankís assets further decreased by 0.5 percent and there was no change in bankís liabilities. (a) What was the percentage change in bankís capital in March? Approximately 6:89% (b) What is the bankís leverage ratio at the end of March? Approximately 14:7
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT