Determine the financial statement on which the item below appears. Use I for income statement. E for statement of owner's equity, and B for balance sheet.
 Depreciation Expense

a. Return on assets, or ROA, can be expressed as the product of two ratios. Which two?\

b. Return on equity, or ROE, can be expressed as the product of three ratios. Which three?

A company proposes to include in its SEC registration statement a balance sheet showing its subordinate debt as a portion of stockholders’ equity. Will the SEC allow this? Why or why not?

Indicate whether each of the following types of transactions will either increase owner’s equity.

1. owner’s investments
2. revenues
3. expenses
4. owner’s withdrawals

Once Bitten Corp. applies no debt. The weighted average cost of capital is 9.5 percent. If the current market value of the equity is $20.4 million and there are no taxes, what is EBIT?

Indicate whether each of the following types of transactions will either decrease owner’s equity:

1. owner’s investments
2. revenues
3. expenses
4. owner’s withdrawals

For the items listed below, indicate how the item affects equity (increase, decrease, or no impact).

Calculate the unknown amount in each of the following separate companies a through d.

Best Buy Co., Inc., reported the following amounts in its February 3, 2018, and January 28, 2017, financial statements.

Compute Best Buy's debt-to-equity ratio as of February 3, 2018.

At the moment, Charter Enterprises is entirely funded by equity and has assets worth $1 million. It's thinking about altering its capital structure. Calculate the debt and equity balances that would exist if the company switched to the following debt ratios: 10%, 20%, 30%, 40%, 50%, 60%, and 90%. (Note: The total number of assets would remain the same.) Does the debt ratio have a maximum value?

The Graber Corporation’s common stock has a beta of 1.15. If the risk-free rate is 3.5% and the expected return on the market is 11%, determine the company’s cost of equity capital.

The following data were taken from Alvarado Company’s balance sheet:

a. Compute the ratio of liabilities to owner’s equity. b. Has the creditor’s risk increased or decreased from December 31, 2013, to December 31, 2014?

Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of$4,500,000 with a cost of capital of 11.5%. What is Tyler’s weighted average cost of capital?

Many companies in recent years have bought back their common stock. For example, IBM, with large cash holdings, spent almost $35 billion over three years repurchasing its stock.18 What are the reasons companies buy back their own shares? What is the effect of common stock buybacks on earnings per share, return on equity, return on assets, debt to equity, and the current ratio?