1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AfilCa [17]
3 years ago
8

Tool Manufacturing has an expected EBIT of $82,000 in perpetuity and a tax rate of 24 percent. The company has $143,500 in outst

anding debt at an interest rate of 6.3 percent and its unlevered cost of capital is 13 percentWhat is the value of the firm according to M&M Proposition I with taxes?
Business
1 answer:
Dima020 [189]3 years ago
7 0

Answer:

The value of the firm according to M&M Proposition I with taxes is $513,824.62

Explanation:

Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]

Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%

Value of firm = 62320 / 0.13 + 143500 x 0.24

Value of firm = 479,384.62 + 34,440‬

Value of firm = $513,824.62‬

You might be interested in
What are two characteristics of a commerical bank
uysha [10]
Safe place to put money. Your money if stolen is insured by the FDIC.
8 0
4 years ago
Th process of gaining the resources and skill needed in managing consumer resources is known as
storchak [24]

Answer:

A.) Consumer Education

Explanation:

CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction.

Simply stated, it's a strategic process which typically involves collecting customer information for the purpose of improving a customer's future experience.

Therefore, this employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.

In this context, consumer education is a strategic process which typically involves gaining the necessary resources and skills required to manage consumer resources in order to continue to provide satisfactory services to them.

5 0
3 years ago
Read 2 more answers
Accountants focus on creating financial statements, whereas finance professionals mostly use these statements to evaluate a firm
Anna35 [415]

Answer:

How much debt and equity has the firm issued to finance its assets?

Balance Sheet

How much cash is a firm generating through operating, investing, and financing activities?

Statement of Cash Flows

If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:_________.

Overstate its earnings

Explanation:

The statement of cash flows in the financial statements prepared by the accountant shows outgoing and incoming cash for the period and also the cash balance . Balance sheet also called statement of financial position reflects or shows the assets and liabilities of the company which are broken down to equities and debts in classifying capital sources

Senior management can overstate earnings if company's performance in the short-run is the basis for their earnings. This is because long-term performance of company is not considered and short run earnings of company is characterized by short-sightedness, inflated figures and inconsistencies in performance to maximize earnings

5 0
3 years ago
Helpppppppppppppppppppppppppp
Volgvan
I would say C because examining it with other evidence that was accurate would give you the idea of what you’re look for.
7 0
3 years ago
In order to update a production process, a company can spend money now or four years from now. If the amount now would be $20,00
timama [110]

Answer: $34,980.13

Explanation:

The amount that the company will spend 4 years from now is simply the future value of the amount that it can spend today.

The amount to be spent today is $20,000 so the amount to be spent 4 years from now is the future value of $20,000:

= Amount * (1 + rate) ^ number of years

= 20,000 * ( 1 + 15%)⁴

= $34,980.13

5 0
3 years ago
Other questions:
  • In 2018, Elaine paid $2,760 of tuition and $1,060 for books for her dependent son to attend State University this past fall as a
    12·1 answer
  • What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the
    14·1 answer
  • An individual reports the following capital transactions in the current year: Short-term capital gain $1,000 Short-term capital
    11·1 answer
  • Qualification, Certification, and Credentialing Personnel are part of which NIMS Management Characteristic? A. Information and I
    6·1 answer
  • Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pro
    12·1 answer
  • Graphically illustrate (using the WS and PS relations) and explain the effects of an increase in the markup on the equilibrium r
    12·1 answer
  • A governmental audit may extend beyond an examination leading to the expression of an opinion on the fairness of financial state
    9·1 answer
  • Name An institution that uses opi to measure headline inflation​
    9·1 answer
  • You have been working as a security analyst in the information security department at Aim Higher College for two months. Your ma
    7·1 answer
  • In tort law, what is proximate cause?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!