Exercise 4.12all questions must be answered Exercise 4-17all questions must be answered Problem 4.27 all questions must be answered Answer all the Questions in Q4.2 on Page 155

Q4.2
    Q4.2
    Solution-
        The use of debt finance by the company will be more effectie so long as the ROA excees the Kd. Therefore, the business must stop the borrowing if tts after tax Kd is equal to the ROA. If the borrowing is
        effective in such case tge debt financial shows more returns to stockholders. Since return on Assets can be decompose into ROS and TAT we can also see the leverage is more effective when Return on
        sales is higer or lower when Total assets turover is higher or lower. When a company able to use the leverage more effectively in such case return on equity is more than its Return on Assets.
Exercise 4-12
    Exercise 4.12
    Solution-
            2018        2017
        Return on equity     34.8%        8.5%
        Return on assets    14.1%        3.0%
        Return on sales     21.8%        4.8%
        Total asset turnover     0.64        0.62
        Financial leverage     2.48    times    2.83    times
        Analysis-
        The overall trends of the company ratios are all...