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neonofarm [45]
2 years ago
15

Jericho Snacks is an all-equity firm with estimated earnings before interest and taxes of $624,000 annually forever. Currently,

the firm has no debt but is considering borrowing $725,000 at 6.75 percent interest. The tax rate is 25 percent and the current cost of equity is 15.2 percent. What is the value of the levered firm
Business
1 answer:
vova2212 [387]2 years ago
4 0

Value of levered firm is $2,922,171.

<h3><u>What is Finance?</u></h3>
  • The term "finance" refers to issues including the development, management, and study of money and investments. It entails employing future income flows to finance current initiatives through the use of credit and debt, securities, and investment.
  • Finance is strongly tied to the time value of money, interest rates, and other related topics because of its temporal component.
  • There are numerous further specialized classifications, such as behavioral finance, which aims to pinpoint the cognitive (e.g., emotional, social, and psychological) drivers of financial decisions.
  • Typically, "finance" is divided into three major categories: Taxation systems, government spending, budgeting practices, stabilization tools and policies, debt problems, and other governmental difficulties are all considered to be a part of public finance.
  • Managing a company's assets, liabilities, revenues, and debts is part of corporate finance.

VU = [$624,000 ×(1 -.35)]/.152 = $2,668,421.05

The Value of the levered Firm is:

VL = $2,668,421.05 + (.35 ×$725,000) = $2,922,171

Know more about Finance with the help of the given link:

brainly.com/question/26168077

#SPJ4

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Answer:

The type of action that asks how and why performance deviated is called BASIC CORRECTIVE ACTON.

Explanation:

Basic corrective action are Corrective action that looks at how and why performance deviated before correcting the source of deviation.

Basic Corrective Action - Essential restorative activity that takes a gander at how and why execution veered off before remedying the wellspring of deviation. It's not unusual for supervisors to legitimize that they don't have opportunity to discover the wellspring of an issue (fundamental restorative activity) and keep on ceaselessly "put out flames" with prompt remedial activity.

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3 years ago
Using the intuitive least cost method for the given transportation problem, answer the following: Cleveland Dayton Erie Supply A
ch4aika [34]

Answer:

The demand location where demand is unmet is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

Explanation:

Solution

From the example given, we solve for which demand location will have an unmet demand

Now,

The maximum quantity that can be shipped from Allentown to Erie is 100.

The Maximum quantity that can be shipped from Harrisburg to Cleveland is 175

While,

The Maximum quantity that can be shipped from Harrisburg to Dayton is 175

Hence, in case we want an  solution optimum to get the required demand as many as possible with the supply given and with a low costs, then we need to find the optimum solution.

By applying a least cost method called greedy, we need to remove our least costing node and then provide minimum of demand and supply unit a present to each cell.

Thus,

The first least cost is Allentown to Dayton.

From Allentown to Dayton 100 units. Next least cost is Philadelphia to Erie.

From Philadelphia to Erie 150 units. Next least cost is Harrisburg to Erie.

From Harrisburg to Erie 25 units. Next least cost is Harrisburg to Dayton.

From Harrisburg to Dayton 75 units. Next least cost is Harrisburg to Cleveland

From Harrisburg to Cleveland 75 units.

So, for the  optimum solution, the right choice of answer will be

From Allentown to Erie = 0 units

From Harrisburg to Cleveland = 75 units

From Harrisburg to Dayton = 75 units

Therefore, The demand location where demand is unmet  is equal to Cleveland. Received only 75 units. 100 units demand is unmet.

6 0
3 years ago
Tasha recently changed employers within the same industry. At her old company, employees routinely took home company pens, penci
kakasveta [241]

Answer:

The correct answer is corporate culture.

Explanation:

Corporate or organizational culture is, basically, the ideology of a company: the set of attitudes, habits, beliefs and behaviors of the human group that makes it up, the way they interact and the way they manage external business transactions.

It can be developed intentionally according to the direction in which the company moves in terms of style, priorities and values, or in a more organic way as a result of the sum of the characteristic features of its members and the nature of the interaction between them.

The culture of a company is reflected in its public image, its dress code, its business hours, its facilities, the benefits of its employees, its sales volume, hiring decisions, the treatment of customers and the degree of satisfaction of them and all other aspects of operations.

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3 years ago
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Answer:

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7 0
3 years ago
Mervon Company has two operating departments: mixing and bottling. Mixing occupies 23,045 square feet. Bottling occupies 18,855
fiasKO [112]

Answer:

Mixing= $112,000

Bottling= $91,800

Explanation:

Giving the following information:

Mixing occupies 23,045 square feet

Bottling occupies 18,855 square feet.

Total sq= 41,900

Indirect factory costs include maintenance costs of $204,000.

First, we need to calculate the proportion of square feet for each department:

Mixing= 23,045/41,900= 0.55

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Now, we can allocate overhead:

Mixing= 0.55*204,000= $112,000

Bottling= 0.45*204,000= $91,800

7 0
3 years ago
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