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
How do I determine which is y=-1/3x+2?
Jlenok [28]

Step-by-step explanation:

This is a linear equation in slope intercept form which is

y = mx + b

where m is the slope and b is the y intercept.

The equation

y =  -  \frac{1}{3} x + 2

Has a slope of -1/3 so this means that the slope will be decreasing. A negative linear equation increases as we go left. and decreases as we go right. The y intercept is 2. So this means the graph must pass through (0,2) and when x=0, y must be 2.

In other words, look for a line that the y values increase as we go left and decrease we go right. Also look for a point (0,2) and make sure the graph pass through it.

6 0
3 years ago
What does pi r 2 mean
Neporo4naja [7]
Pi r² is circle's area expression.
So the r is radius,.

8 0
3 years ago
Read 2 more answers
A nugget of gold is placed in a graduated cylinder that contains 85 mL of water.the water level rises to 225 mL after the nugget
Rufina [12.5K]
To get the volume of an object, one of the oldest techniques is to fill a container with water of which we know the volume (in this case 85mL), and drop the object in. The water will rise and show a new volume (225mL). If we subtract the old volume (85) from the new volume (225), we will get the volume of the object (225 - 85 = 140).
8 0
3 years ago
Of the 250 passengers on the plane, 177 checked their bags rather than carry-on. What *percent* opted for carry-on?
Harrizon [31]

Answer:

29.2%

Step-by-step explanation:

250-177=73

250x0.292=73

0.292 is 29.2% in decimal form.

7 0
3 years ago
100 points to whoever answers this question!!
Klio2033 [76]
Sweden is 2.12 in its mean and Germany is 2.03 I kinda made a mistake bout the winner didn’t read the instructions well the country with the least is the winner Sorry about that...my bad

4 0
3 years ago
Read 2 more answers
Other questions:
  • What is 5/6 - 2/3 in simplest form
    10·2 answers
  • Which is NOT a factor of 48?<br> A.24<br> B.16<br> C.4<br> D.26
    11·2 answers
  • Find the circumference of the circle.
    10·2 answers
  • Joanna uses the function p = (n) = 30n − 450 to calculate the profit, p, in dollars that she makes from selling n cakes in her s
    8·1 answer
  • The perimeter of a rectangle is 37cm find X
    10·1 answer
  • 43.44+2.45 divide 0.5* 1.15
    12·1 answer
  • The rate of change is
    10·1 answer
  • How Did the Function Cross the Bridge?
    9·1 answer
  • What is a cup equal to in fractions
    11·1 answer
  • Find the area of this parallelogram<br> 4 units<br> 4.5 units<br> 6 units
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!