1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Effectus [21]
2 years ago
10

Solid rock is an unlevered firm with an ebit of $10 million and an unlevered cost of capital of 12 percent. if the tax rate is 4

0 percent, what is the value of the firm?
Mathematics
1 answer:
saveliy_v [14]2 years ago
8 0

The value of the firm is $50 million

<h3>How to determine the value of the firm?</h3>

The given parameters are:

EBIT = $10 million

Tax Rate, Tc = 40%

Unlevered cost of capital, RU = 12%

The value of the firm is calculated as:

Value = EBIT*(1 - Tc)/Ru

This gives

Value = 10 million *(1 - 40%)/12%

Evaluate the expression

Value = 50 million

Hence, the value of the firm is $50 million

Read more about tax rate at:

brainly.com/question/12395856

#SPJ1

You might be interested in
What is the answer to this question?
hammer [34]
Both have a right angle, and both have a 61* angle, meaning the third angle has to be 29* on both (all angles in a triangle have to add up to 180 so you subtract the 90 and the 61 = 29)
5 0
2 years ago
Pls Help meeeee UWU (im gonna die)
Ronch [10]

Answer:

10

Step-by-step explanation:

When you sub in the numbers you get 20 divided by 2

6 0
3 years ago
It is estimated that each guest at a party will eat 3/4 pounds of chocolates. How many guest can be served with 9 pounds of choc
bearhunter [10]
12.
You must do 9 divided by 3/4
3/4 = .75
9 divided by .75 is 12
6 0
3 years ago
The total cost of blueberries at the farmers market varies directly with the weight. Victor paid $2.73 for 2.6 pounds of blueber
andriy [413]

Answer:

t = wR_p         [R_p = 1.05]

Step-by-step explanation:

<em>For the case of victor: </em>, let total cost be t_v = 2.73 and total weight be w_v = 2.6.

So the price rate per 1 pound of blueberries should be,

R_P = \frac{t_v}{w_v}\\= \frac{2.73}{2.6}\\= 1.05\\

<em>For general case: </em>1 pound costs R_P so w pound costs wR_p pounds. So the equation should be,

t = wR_p         [R_p = 1.05]

8 0
3 years ago
If x and y are negative integers, then which of the following is
ioda
B) 2 x is the answer
7 0
3 years ago
Other questions:
  • What is the unit rate of “ $44 for 8 pounds of fruit ”
    13·1 answer
  • In the haden company, the standard material cost for the silk used in making a dress is $27.00 based on three square feet of sil
    10·1 answer
  • Explain how you can determine the initial value of a linear relationship, the y- intercept, when given two points.
    11·1 answer
  • How are the sun rays like mathematical rays
    11·1 answer
  • Can you help me please?
    15·1 answer
  • The petrol tank at the local service station has a capacity of 6000L. It is 66.06 percent full. How many litres of petrol are ne
    5·1 answer
  • SOMEONE PLEASE HELP ME PLEASE!!!
    11·1 answer
  • Write the digit in the ten thousands place
    9·1 answer
  • she sells 6adult tickets and 5 children tickets on the first day totaling $112.50 and on the second day she sells 8adult tickets
    14·1 answer
  • A function g is described below:
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!