Answer:
The value of the levered firm $31,125
Explanation:
Value of Firm is the value of present value of expected future earning. It is calculated by dividing the earning after tax by the cost of capital while considering that the business will operate for the foreseeable future time.
EBIT $4,250.00
Less
Interest <u>$0.00 </u>
EBT $4,250.00
Tax 35% x 4250 <u>$1,487.50</u>
EAT <u>$2,762.50</u>
Cost of Capial 10%
Value of firm = EAT / Cost of Capital = $2,762.5 / 10% = $27,625
Debt after tax = $10,000 x ( 1 - 0.35 ) = $6,500
Value of Equity = Value of firm - Debt after tax = $27,625 - $6,500 = $21,125
Value of debt = $10,000
Value of levered Firm = $21,125 + $10,000 = $31,125
Answer choice D is punctuated correctly due to the use of the long dash between the words year and summer.
Declining-balance depreciation method does not use an asset's residual value to calculate depreciation expense.
<h3>What is depreciation?</h3>
- In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used.
- Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset (such as equipment) over its useful life span.
<h3>What does accounting depreciation mean?</h3>
- During the asset's anticipated useful life, depreciation is allocated in order to charge a fair percentage of the depreciable amount in each accounting period.
- Amortization of assets with predetermined useful lives is included in depreciation.
Learn more about depreciation here:
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Answer:
they did it to secure maximum production
Explanation:
Why did the War Production Board (WPB) prefer to deal with major corporations rather than with small businesses
Answer:
Option A. a trial is being held.
Explanation:
I am pretty sure its the answer, hope it helps!