<u>Note:</u>
<u>I was unable to find the complete question. The only thing I accessed successfully was the solution of the question.</u>
Answer:
Reduce student loan balances by $12,000 within 5 years by making extra payments of $200 each month.
Explanation:
The reason is that the reduction in the student loan is:
Specific as it addresses about the solution of the plan which in this case is paying extra $200 each month.
Measurable as the student loan reduction is by $12,000, time duration and the extra payment is also measurable.
Attainable as the each month extra payment of $200 is not large amount.
Realistic as the reduction by $12,000 is computed on appropriate grounds ($200 per month * 12 month * 5 years).
Timely as the achievement duration of the goal set is 5 years.
Hence the goal is SMART.
Not available for individual investors hola
The contingency approach to management is based on the idea that there is no single best way to manage. Contingency refers to the immediate contingent circumstances. Effective organizations must tailor their planning, organizing, leading, and controlling to their particular circumstances.
Answer:
$587,500
Explanation:
You are required to calculate the value of the levered firm;
vL = vU + Dt, whereby;
vL = Value of levered firm
vU = value of unlevered firm
Dt = debt * tax ; which is the tax shield
Find value of unlevered firm;
vU = [EBIT(1-tax) ]/ rE
= [100,000(1-0.30)] / 0.16
= 437,500
Value of levered firm;
vL = 437,500 + (500,000*0.30)
= 437,500 +150,000
= $587,500
