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
Morgarella [4.7K]
3 years ago
7

The Winter Wear Company has expected earnings before interest and taxes of $3,800, an unlevered cost of capital of 15.4 percent

and a tax rate of 35 percent. The company also has $2,600 of debt with a coupon rate of 5.7 percent. The debt is selling at par value. What is the value of this firm
Business
1 answer:
sleet_krkn [62]3 years ago
7 0

Answer:

The value of the firm is $16,949

Explanation:

Value of the firm is the firm's economic value at a particular time. Winter Wear Company's value will be calculated by:

= \frac{EBIT(1-tax rate)}{Unlevered Cost of Capital} + (Tax rate * Debt) =

Here given are,

EBIT = $3,800

Tax Rate = 35%

Unlevered Cost of Capital = 15.4%

Debt = $2,600

= \frac{3,800(0.65)}{0.154} + (0.35 x $2,600)

= $16,039 + $ 910

= $16,949

You might be interested in
Help ASAP Plz i have 3mins left thx!!!
Viefleur [7K]

1. A) Because you don't want to be stuck living with your parents until you are 30

2. B) Living and educational expenses


Reason:

I took a test very similar to this a few days ago, and I am a straight-A student.

4 0
4 years ago
Read 2 more answers
Sally is fixing powerlines that were damaged during a storm. In which career pathway is she most likely working?
Neporo4naja [7]
She is working in the electricity industry.
7 0
3 years ago
Read 2 more answers
Treasury bill returns are 4%, 3%, 2%, and 5% over four years. The standard deviation of returns
IRINA_888 [86]

Answer:

Option (D) 1.29%

Explanation:

Data provided in the question:

Treasury bill returns over four years :

4%, 3%, 2%, and 5%

Now,

Average return = (4% + 3% + 2%+ 5%) ÷ 4

= 3.5%

Standard deviation = [ ∑(Return - Mean)² ] ÷ [ n -1 ]

= [ (4% - 3.5%)² + (3% - 3.5%)² + (2% - 3.5%)² + (5% - 3.5%)² ] ÷ [ 4 - 1 ]

= 3.87% ÷ 3

= 1.29%

Hence,

Option (D) 1.29%

8 0
3 years ago
Discuss this statement: "Internationalization is a relevant strategic option for high-tech venture expansion and growth." What m
juin [17]

Answer:

When a firm decides to situate its operations outside of its original geographic boundaries, it is said to have internationalized its operations.

It is right to acquiesce to the position that Internationalization can become a critical growth strategy for a high-tech venture.

Explanation:

Every country/economy in the world operates at different levels of efficiency with various degrees of economic advantages and disadvantages to the businesses. The one singular factor that validates this statement is the  Cost of Doing Business.

For example,

by virtue of China's huge population and economic strategies, its low cost of production (which was mainly due to cheap labour) became a great incentive to many tech companies all over the world especially IT.

By relocating production operations to China, many companies got the same quality for far less than they would have if they retained such operations in their home country.

One example of this is Apple. Apple currently has an operation in China which manufactures its iPhones with a production plant that is 230,000 staff strong.

Foxconn which is the name of the manufacturing partner which China uses boasts of the ability to produce half a million iPhones in a day.

On the 30th of July, 2020, USD 59.7 billion was posted by Apply as its earning. This is an 11% growth over its quarterly performance from a year ago of which 60% is accounted for by sales from international economies.

The above facts speak to the relevance/advantages of internationalisation.

Cheers!

7 0
4 years ago
Management commitment and employee involvement in a safety program is demonstrated by all these actions EXCEPT:
kaheart [24]

Answer:

Increased exposure to build endurance.

Explanation:

Occupational safety and health adminstration (OSHA) has given certain safety guidelines to be followed by management to protect worker from work hazard, which may occur in an unforseen condition.

Management commitment compliment the employee involvment as management commitment show, how serious is the management toward worker safety and protection, which create motivation at work place and also help in managing resources for health and safety. Then employee involvement help the orgaization to implement the safety measures.

Management can not take risk of work place hazard to increase exposure for employee, which may cause fatal incident.

7 0
4 years ago
Other questions:
  • Does a 14 year old need a work permit to work at safeway
    14·2 answers
  • Shoshanna owns a hair salon. She starts with one employee and hires a second a week after she opens. Shoshanna notices that afte
    8·1 answer
  • The required investment cost of a​ new, large shopping center is ​$49 million. The salvage value of the project is estimated to
    10·1 answer
  • Which of the following is a microeconomic topic?
    10·1 answer
  • Currently you purchase ten frozen pizza per month. You will graduate from college in December, and you will start a new (high-pa
    15·1 answer
  • __________ fairness refers to the perceived fairness of the process with which a firm handles customer complaints
    13·1 answer
  • Your best friend says they don’t think insurance is important. Explain to them why it is important to have insurance. How is hav
    10·2 answers
  • Please help soon please!
    6·1 answer
  • A firm's total revenue can be determined by Group of answer choices None of the Answers are Correct. Fixed costs minus quantity.
    10·1 answer
  • Under the rule of 70, if the GDP per capita growth rate in the United States is 2.3%, standards of living double every:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!