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marshall27 [118]
3 years ago
15

Suppose that your firm's current unlevered value, V*, is $800,000, and its marginal corporate tax rate is 35 percent. Also, you

model the firm's PV of financial distress as a function of its debt level according to the relation: PV of financial distress = 800,000 × ((D/V*)^2). What is the firm's levered value if it issues $200,000 of perpetual debt to buy back stock?
Business
1 answer:
max2010maxim [7]3 years ago
3 0

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

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If short-run marginal cost and average variable cost curves for a competitive firm are given by SMC = 2 + 4Q, and AVC = 2 + 2Q,
sukhopar [10]

Answer:

units of output  = 2 units

fixed cost = 8

Explanation:

given data

SMC = 2 + 4Q

AVC = 2 + 2Q

to find out

how many units of output will it produce at a market price and what level of fixed cost will this firm earn zero economic profit

solution

we know here that  under perfect competition

so at the equilibrium here Price (P)  will be = MC

P = MC = 10

and

SMC = 2 + 4Q ,

P = 2 + 4Q

10 = 2 + 4Q

Q = 2 units

and

at zero economic profit we get

TR = TC    

TR = P × Q

TR = 10 × 2

TR = 20

so

TC = TFC + TVC

20 = TFC + 12    

TFC  = 8

because here [ TVC = AVC × Q ]

[ TVC = (2 + 2 × 2) × 2 ]  

[ TVC = 12 ]

8 0
4 years ago
What does reliability ensure? A. The system has the ability to operate in many different operating systems B. The system is easy
PolarNik [594]

Answer:

C. The system is functioning correctly and providing accurate information

Explanation:

Reliability refers to the ability of a system or a machine to perform its intended function with minimal or nil breakdown.  Consistency and validity of data from the performance of a system or a piece of equipment indicate its reliability. It is the possibility of failure-free operation of a system.

Reliability will, therefore, ensure a system is performing its function with minimal interruptions resulting from failures. It guarantees consistency in the results from operations. With reliability, production happens when it is needed.

5 0
3 years ago
Tom is trying to quit smoking. His parents, siblings, wife, children, and his doctor have all emphasized to him how important it
4vir4ik [10]

Answer:

perceived behavioral control

Explanation:

According to my research on the theory of planned behavior, I can say that based on the information provided within the question the factor most likely to interfere with Tom quitting smoking is his perceived behavioral control. This is defined as the individuals perception of believing whether or not a behavior is within their control. If Tom does not believe quitting smoking is in his control, then he will not be able to quit regardless of how many people tell him how important it is to do so.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Read 2 more answers
Choose the best closing for a message requesting the receiver's support for a proposed change in a benefits plan.
MrRissso [65]

Answer:

c. Contacting me by December 1 about your support of this new benefits plan will allow me to present this proposal at the next strategic planning session.

Explanation:

The closing for a request should indicate a deadline for receiver, which can help to engage receiver in sender’s process.

Even though in this scenario, the sender is requesting for a support which might be not receiver’s responsibility to accept the benefit plan, but the sender can smartly appreciate the receiver if he can have the support by December 1.

I suppose with this closing in an email, receiver will put this mail in his working calendar or prioritized list if he really care and want to support this plan.

3 0
3 years ago
How to empower employees ?
Zepler [3.9K]

Answer:

set clear boundarys

dont be afaid to yell

Explanation:

8 0
3 years ago
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