Solution :
a). The current market value of the unlevered equity
= $ 40.45 million
b). The market value of the equity one year from now is
= $ 44.5 million - $ 18 million
= $ 26.5 million
c). The expected return on the equity without the leverage = 10%
The expected return on the equity with the leverage = 
= 0.93 %
d). The lowest possible value of equity without the leverage = $20 million - $ 18 million
= $ 2 million
The lowest return on the equity without the leverage = 10%
The lowest return on the equity with the leverage = 2 % as the equity is eroded.
Answer:
The correct answer is (A and C)
Explanation:
Storing data is important for businesses as it helps to record everything, and it can be used at any time to ensure transparency and integration. Relationship database is a mean of storing data which helps to apply business rules and regulations across every operation. Likewise, it also helps to inline all the operations to integrate business processes.
The answer is a statement of future intent. It is a statement
of an intention has to do something in the future is not an offer. Agreements
to agree arise when two parties are conversing an event involving future
transactions which are still in progress. A statement of future intent is not a
legally binding contract. It only designates an agreement by the two parties
involved in the negotiation to attempt to form a future agreement. An agreement
to agree is not binding if the matter under discussion is still in argument.
Answer:
C.
Explanation:
The Four Tigers also known as Four Asian Tigers is a reference to four nations in East Asia: Singapore, South Korea, Hong Kong and Taiwan. All four economies had high growth rates amid broad expansion between the 1950s and the 1990s, but also through today.
Answer: True
Explanation:
Classified stocks are referred to as the stocks of a publicly-traded company which possess different classes of stocks. Classified shares typically has some special privileges, like the dividend rights and the enhanced voting rights.
The use of classified stock allows the founders of a company to have control over the company despite not having to own the majority of the common stock. Therefore, the correct option is True.
