Answer and Explanation:
The computation is shown below:
a. Marpor's value without leverage is
But before that first we have to calculate the required rate of return which is
The Required rate of return = Risk Free rate of return + Beta × market risk premium
= 5% + 1.1 × (15% - 5%)
= 16%
Now without leverage is
= Free cash flows generates ÷ required rate of return
= $16,000,000 ÷ 16%
= $100,000,000
b. And, with the new leverage is
= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)
= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)
= $93,750,000 + $14,000,000
= $107,750,000
Store A= 45 x .10 = 4.5 45 - 4.5 = 40.5 40.5 x .06 = 2.43 40.5 + 2.43 = 42.93 nowStore B = 46 - 10 = 36 36 x .06 = 2.16 36 + 2.16 = 38.16so 40-38.6 that will be 1.84so correct option is B hope it helps
Answer:
The answer is: Public goods
Explanation:
Public goods are provided by government entities and many times they are given for free or at a very low subsidized price. Public goods are non-excludable since everyone is entitled to use them (e.g. streetlight). Also public goods have no rivals that compete with them (e.g. law enforcement). Most of the public goods are free, but some exceptions exist like the US Mail.
Answer:
If the company follows the residual dividend policy, it is $50,000 in dividends.
Explanation:
Dividend is calculated by using the formula:
Dividends = Net Income - Equity requirement
where, Equity requirement = Capital budget (% Equity)
= 500,000(70%) = $350,000
∴ Dividends = 400,000 - 350,000
= <u>$50,000
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