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
Alborosie
3 years ago
13

Quillpen Company is unlevered and has a value of $45 billion. An otherwise identical but levered firm finances 25% of its capita

l structure with debt. Under the MM zero-tax model, what is the value of the levered firm? Enter your answer in billions. For example, an answer of $1 billion should be entered as 1, not 1,000,000,000. Round your answer to the nearest whole number.
Business
1 answer:
Alex_Xolod [135]3 years ago
5 0

Answer:

We can conclude that the value of levered firm is 40 billion.

Explanation:

Under the MM zero tax model value of levered firm is equal to value of unleveled firm

Under MM zero tax model VL = VU

VL= value of levered firm  

VU= value of unleveled firm  

Value of levered firm = value of unleveled firm + (tax rate × value of debt)

Firm capital structure is included debt and equity , when there is no tax it means value of levered and unleveled firm value is same

Therefore, We can conclude that the value of levered firm is 40 billion.

You might be interested in
Oleander Corporation, a calendar year entity, begins business on March 1, 2019. The corporation incurs startup expenditures of $
jek_recluse [69]

Answer:

$3,556

Explanation:

Because the startup expenditure is above $50,000, the startup expenditures which are not deducted may be amortized over a period of 180 months starting from the beginning of trade.

This is calculated as the startup cost is divided by the total number of months allowed to be amortized and the answer is then multiplied by the months traded during the year. In the case provided the months in which the Oleander Corporation has been trading are 10 months starting from March-December 2019.

Amortizable amount {($64,000 / 180 months) * 10 months}

= $3,556 this is total deduction allowed as startup expenditure.

8 0
3 years ago
Read 2 more answers
A credit-card company hires telemarketers to call customers to try to entice them to sign up for a new credit card. The telemark
Morgarella [4.7K]

Answer:

The answer is option A) This is an example of continuous reinforcement schedule

Explanation:

A schedule of reinforcement is basically a rule stating which instances of behavior will be reinforced. In some cases, a behavior might be reinforced every time it occurs. Sometimes, a behavior might not be reinforced at all.

continuous reinforcement schedule occurs when reinforcement is delivered after every single target behavior. This is clearly illustrated with the bonus paid to the telemarketers for every fourth application the company receives.

7 0
3 years ago
Ivy is investing in a home cleaning franchise called HomeKeepers. At her first interview with the franchisor's selling agent, sh
evablogger [386]

Answer:

A royalty is a fee that the franchisee has to pay the franchiser for trading under its name.

Explanation:

A franchise operation is when one party (franchiser) allows another party (franchisee) access to it’s proprietary knowledge, trademark and processes in order to allow the party to sell a product or provide a service under the business’s name. A common example of a franchise operation are KFC outlets across the globe.

A royalty fee is a fee that the franchisee has to pay the franchiser on a common basis such as quarterly or annually for trading under its name. It is generally calculated as a percentage of gross sales. In this case the royalty fee would be 5% of gross sales.

4 0
3 years ago
Copper Corporation, a calendar year C corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for
UNO [17]

Answer: $150,000

Explanation:

The Dividend Received Deduction is a Federal tax deduction that applies when a related company pays dividends to another company that owns part of it.

The relevant provision is that when a company owns more than 80% of the company receiving the Dividend, the Dividend Received Deduction amounts to 100% of dividends received.

Cooper Corporation may therefore claim a deduction of $150,000 being the total amount as they own 85% of Broze Corporation Stock.

7 0
3 years ago
Read 2 more answers
Write two sentences that explain what this evidence tells you about Manjiro’s culture.
Montano1993 [528]

Manjiro presents a sword and short knife to his friend. The way that he and his friend talk about them show that they are important in Japanese culture.

mark me brainlist plz

7 0
3 years ago
Other questions:
  • Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them m
    11·1 answer
  • Which statement is false? 1 land is the primary factor of production used in the production of all goods and services. 2 an entr
    14·1 answer
  • Charles, Anna, Elle, and Adam are college friends and work in New York City. Comfortable living in New York occurs at about $40,
    14·1 answer
  • Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold 20,000 Selling price per un
    7·1 answer
  • Different companies using the same accounting principles is an example of _________________. For instance, this occurs when two
    9·1 answer
  • The gizmo industry has the following characteristics: over 600 producers with no one producer furnishing more than .5% of the in
    13·1 answer
  • Help me with the question​
    7·1 answer
  • The adjusted trial balance for Martell Bowling Alley at December 31, 2017, contains the following accounts:
    15·1 answer
  • The double-declining-balance and straight-line depreciation methods: multiple choice are the only acceptable methods of deprecia
    5·1 answer
  • ritzer argues that the operating procedures perfected (but not originated) by have been duplicated in countless arenas from amus
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!