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Furkat [3]
3 years ago
5

5. Ren Inc. has expected earnings before interest and taxes of $63,300, an unlevered cost of capital of 14.7 percent, and a comb

ined tax rate of 23 percent. The company also has $11,000 of debt that carries a coupon rate of 7 percent. The debt is selling at par value. What is the value of this company?
Business
1 answer:
laila [671]3 years ago
5 0

Answer:

$334,101.43

Explanation:

The computation of the value of this company is shown below:

Value of unlevered firm= [$63,300 × (1 - 23%)] ÷ 14.7%

= $331,571.43

And,

Value of this company = 331,571.43 + 23% of $11,000

= $331,571.43 + $2,530

= $334,101.43

As we know that value of the company is the mix o f levered firm and the unlevered firm according to that we done the calculations

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You run a school in Florida. Fixed monthly cost is $5,835.00 for rent and utilities, $5,906.00 is spent in salaries and $1,061.0
olga55 [171]

Answer: 1.621

Explanation:

The old charge per student was $678 per month

The new charge is $1,099.

The percent of the new charge compared to the old according to the question methodology is:

= New charge per student / old charge per student

= 1,099/678

= 1.621

3 0
3 years ago
Which form of business ownership is the most complex and difficult to form, and why?
Finger [1]
Honestly I would say being an entrepreneur is the most complex and difficult to form, especially if you're trying to build from the ground up it can take a matter of 4-5 maybe more years, this isn't a "answer" ore of an "opinion." 

Hope this helped though! 
6 0
3 years ago
During its first year of operations, Silverman Company paid $12,385 for direct materials and $10,600 for production workers' wag
Bingel [31]

Answer:

Finished goods inventory final balance= 12, 495

Explanation:

PRODUCTION COST COMPONENTS

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  • Direct work 10,600  
  • Lease and utilities 9,600

TOTAL PRODUCTION COST = 32,585

TOTAL UNITS PRODUCED = 6,650

UNIT COST= (Total Production Cost / Total Units Produced) = 32,585 / 6,650 = 4.9  

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 6,650 – 4,100 = 2,250

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,250 * 4.9 = 12,495

4 0
3 years ago
A farmer raises wheat and pays a portion of it as a tax that is collected by government agents and sent to a central storage fac
Alisiya [41]

Answer: redistribution

                                         

Explanation: In simple words, redistribution refers to the process in which something is distributed in way to achieve a specific objective like equality etc.

In other words, it can be seen as transfer of wealth or resources from one section of the society to the other sections. Redistribution is  performed by governments of the country and is implemented using tools such as taxes, charity and public services etc.

Hence from the above we can conclude that the given example depcits redistribution.    

8 0
3 years ago
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The main objective of sustainability is for people to live in peace and harmony on Earth for an extended period of time.

Since it is difficult to come to a consensus on specific definitions of sustainability, they change over time and in the literature.

This idea can be applied to inform choices made at the international, governmental, and personal levels.

The environmental implications of sustainability are frequently highlighted in the common usage of the term.

Since about 2000, climate change, biodiversity loss, ecosystem services loss, land degradation, and air and water pollution have been the most significant environmental challenges.

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8 0
1 year ago
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