Answer:
$26.52.
Explanation:
We use the MM Proposition I formula as follows:
VL = VU + (Tc * D) ....................................................... (1)
Where;
VL = Value of a levered firm, i.e. X = ?
VU = Value of an unlevered firm, i.e. Y = $24
Tc = Tax rate = 21%
D = value of debt = $12
Note: The US 2020 corporate tax rate is used as the tax rate since no tax rate is given in the question.
Substituting the values into equation (1), we have:
VL = $24 + (21% * $12) = $24 + $2.52 = $26.52.
Therefore, According to MM Proposition I, the stock price for Firm X is closest to $26.52.
Hi cletus you look like a fetus
Explanation:
area 51
Answer: b. Internal limits
Explanation:
Sometimes there will be internal limits on a policy which will usually be less than the general policy limits so as to limit the amount the insurance company will pay on certain goods such as surgical procedures.
This is therefore the relevant provision here because there is probably a cap on the amount that Deion's insurance company will pay on the surgery but as Deion was within acceptable costs, he won't have to pay for passing any internal limits.
The demand for the coffee will decrease with the rise in the fee because of decrease in the money in hand of the student.
<u>Explanation:</u>
Demand of a particular product is related to many factors. Some of the factors affecting the demand of a good are price of the good, income of the consumers, taste, fashion, availability of substitutes and so on.
In the above given example, since with the rise in the tuition and the fee of the student, the money in the hand of the student decreases, so he will have less money to spend. Therefore the demand of the coffee will also decrease with this increase.
Answer:
Retained earnings balance on Dec 31 = $2000
Explanation:
Statement showing computations
Particulars Amount
Opening balance in retained earnings $ 5,000.
Add income (Loss) = $3300 - $4100 (-$800.00)
Less Dividends Paid = (2,200.00)
Retained earnings balance on Dec 31 $2000
