Answer:
$820,000
Explanation:
The computation of the firm's levered value is shown below:
Value of levered firm = Value of unlevered firm + Debt × tax -PV (financial distress)
Value of levered firm = $800,000 + $200000 × 35% - $800,0000 × (25%)^2
= $820,000
The 25% is come from
= $200,000 ÷ $800,000
= 25%
We simply applied the above formula to determine the levered value
Can i say actress?
jennifer aniston
There is no sentence here.
By the looks of it you already got it taken care of but thanks for the points ;)
Buying and selling are at the centre of trading strategies that involve buying on one asset while selling another. Investors can also sell an asset in order to cut their losses. They may do this if one of there asset is dropping in value and they don't expect it to rise ever again.