An economy's standard of living can be at its highest if:

Calvert Corporation expects an EBIT of $23,300 every year forever. The company currently has no debt, and its cost of equity is

Gnesinka [82]

Answer:

Missing <em>"b-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value? b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?"</em>

a. Current value of the company = EBIT*(1-t) / Ke

Current value of the company = $23,300*(1-0.25) / 0.143

Current value of the company = $23,300*0.75 / 0.143

Current value of the company = $17,475 / 0.143

Current value of the company = $122202.7972027972

Current value of the company = $122,202.80

So, the current value of the company is $122,202.80.

bi. Value of the company = $122,202.80 + (0.25*$122,202.80*0.5)

Value of the company = $122,202.80 + $15,275.35

Value of the company = $137,478.15

bii Value of the company = $122,202.80 + (0.25*$122,202.80*1)

Value of the company = $122,202.80 + $30,550.7

Value of the company = $152,753.5

7 0

3 years ago

You invested $4,500 in a project which gave you a return of 13.1% the 1st year. you were quite happy, but the 2nd year wasn't as

Nadusha1986 [10]

The annual average rate of return can be calculated by calculating the average of three years annual return on the investment.

It is given that the investment earned a positive return of 13.1% in the first year, a negative return of -4.3% in the second year and a positive return of 5.9% in the third year.

Hence the annual average rate of return shall be (13.1-4.3+5.9)/3 =<u> 4.9%</u>

7 0

3 years ago

An increase in the money supply causes

Murljashka [212]

Answer:

Inflationary Pressure

Explanation:

Inflationary pressures are the underlying causes of inflation. These pressures are the reason that the production of goods increases to meet or exceed consumer demand or that prices increase due to lack of supply. Inflationary pressures cause the economy to adjust as a result of supply and demand.

6 0

2 years ago

What are the roles of the control unit and the alu?

makvit [3.9K]

An arithmetic logic unit is a digital circuit used to perform arithmetic and logic operations. It signifies the essential building block of the central processing unit of a computer. The modern central processing unit contain very powerful and complex arithmetic logic unit. In addition to arithmetic logic unit, modern central processing unit contain a control unit.

8 0

3 years ago

What is a well-informed, but often neglected, source of free marketing data? A. infomercials B. college professors C. Secondhand

klemol [59]

The correct answer is option B - COLLEGE PROFESSORS. The Academia is a brilliant source of free marketing data, and they are very knowledgeable and well-informed. However, the academia is often neglected because entrepreneurs usually ignore and/or overlook them

4 0

3 years ago