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
zhuklara [117]
4 years ago
15

100 million diluted shares outstanding trading at $37.50 per share. The company has $1 billion of debt outstanding with a cost o

f debt at 6.5% at a marginal tax rate of 40%. The company has $100 million of cash on its balance sheet. What is the enterprise value of Correct Inc.
Business
1 answer:
Pepsi [2]4 years ago
4 0

Answer:

$4,650,000,000

Explanation:

We will use the formula below to calculate the enterprise value of Correct inc.

Enterprise value = Market value capital and debts - Cash and investments

= 100 million diluted shares × 37.50 per share + $1 billion of debt outstanding - $100 million cash

= $3750m + $1000m - $100m

= $4,650,000,000.

You might be interested in
Assuming a binding price floor, the more inelastic the supply and the demand curves are, the:1'smaller the shortage a price floo
KATRIN_1 [288]

Answer:

Option "3" is the correct answer.

Explanation:

Inelastic demand curve depict when there's no evident increase in demand due to an increase in price.

3 0
3 years ago
Read 2 more answers
An information system that contains the specialized knowledge and decision rules used by experts and experienced decision makers
Artemon [7]

Answer:

decision support system.

Explanation:

A decision support system is an intelligent system that automates the organizational decision process by collecting data regarding organizational processes and logical and quantitative learning of factors that directly impact a business.

It is then configured as a very effective tool to reduce the risk inherent in the decision-making process of an expert who does not have much experience to make a decision based on their own knowledge.

6 0
3 years ago
Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.80. The required return on an index fund tha
navik [9.2K]

Answer:

3.5%

Explanation:

We will apply asset pricing model to calculate cost of equity (required rate of return). The capital asset pricing model is stated as below:

Cost of equity = Risk-free rate + Beta x Market risk premium

Putting all the number together, we have:                          

Cost of equity (Beale) = 5.5% + 1.8 x (9% - 5.5%) = 11.8%

Cost of equity (Foley) = 5.5% + 0.8 x (9% - 5.5%) = 8.3%

Cost of equity (Beale) - Cost of equity (Foley) = 11.8% - 8.3% = 3.5%

<em />

<em>Note: You can also do quick calculation as below:</em>

<em>Cost of equity (Beale) - Cost of equity (Foley) = (Beta of Beale - Bete of Foley) x Market risk premium = (1.8 - 0.8) x (9% - 5.5%) = 3.5%</em>

6 0
3 years ago
What would be a barrier to a child’s mental development?
kirill [66]

Not having experiences that help them make good choices though out the rest of their lives. Also someone to guide them through times good and bad to help them make the right choices.

5 0
4 years ago
Show all your steps and reasoning.
Sindrei [870]

Answer:

The following are the solution to the given question:

Explanation:

In option a:

The Mandovi's absolute benefit in this issue is that so many ratios are produced and transform because less power is spent than Ducennia (50 -100 compounds to 150 -200).

In option b:

\left\begin{array}{ccc} \text{ O.C}&\text{Per.Ratid}&\text{Per Tauron} \\\text{Mandovia}&\text{0.5\ Tauron}&2 \ Rotid\\\text{Ducennia}&\text{ 0.75\ Tauron}& 1.33 \ Rotid \end{array}\right

In option c:

\left \begin{array}{cccc}1& \text Rotids  \ ou tput} &\text  Taurous \  ou tput}\\ \text{Mandovia }& 10 \ M&5 M\\\text{Ducennia}& 6.7 \ M&5 M \\\text{Total}& 16.7 \ M&10 M\end{array}\right

There are a total of 1 billion labours are available for the equally divided for 0.5 billion and 0.5 billion  for both and the Rotiods is\frac{0.5}{50} = 0.01 \ \ billion

and for taurous = \frac{0.5}{100}-0.005\ \ billion.

5 0
4 years ago
Other questions:
  • Clement applies for a home loan at Global Bank Inc. As part of the process, he provides his personal details to the banker who i
    11·1 answer
  • The Physical Inventory Worksheet is used when: Multiple Choice inventory items are physically placed in the warehouse All of the
    5·1 answer
  • In the market for​ jeans, which of the following events increases the demand for a pair of​ jeans? A. The price of denim cloth f
    10·1 answer
  • Cameron is an accountant in the accounting department of Data Analytics Company. Cameron's son's college tuition is due within a
    13·1 answer
  • Deep Mines has 43,800 shares of common stock outstanding with a beta of 1.54 and a market price of $51 a share. There are 10,000
    9·1 answer
  • Select the correct answer.
    6·1 answer
  • Why is Earned Value a very powerful tool? Answer: It combines the cost, scope, and ____________ as an integrated tool to calcula
    10·1 answer
  • . Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario. He will borr
    15·1 answer
  • Why do we need to carefully plan the operations of the business?​
    14·1 answer
  • List four sources you can use to locate job leads
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!