Answer:
A) total debt = $2,230,000 and it represents 175,000 - 125,000 = 50,000 outstanding shares
price per share = $2,230,000 / 50,000 = $44.60 per share
B) enterprise value = 175,000 x $44.60 = $7,805,000
According to M&M proposition I, the enterprise value is the same with or without any outstanding debt. So the company's value is the same for both alternatives.
Answer:
Entrepreneurship is the name given to the factor of production which performs the functions of Enterprise. In economics, Land, Labour, Capital, Organisation and Enterprise are the five factors which are thought to be the basis of all the production activities. Entrepreneurship in a broader sense can be considered as a process of action undertaken by an entrepreneur (Person) to establish his enterprise. It is a creative and innovative response to the environment. Entrepreneurship can be described as a creative and innovative response to the environment. Such responses may take place in any field of social endeavour may be business, agriculture, social work and education etc.
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Please mark me as brainliest</h2>
something that is present but no longer used by an organism such as a tailbone or appendix in humans
Answer:
American Explorations current WACC is 9%
Explanation:
The computation of WACC is shown below:
= (Cost of equity × equity percentage) + (after-tax cost of debt × debt percentage)
= (12% × 50%) + (6% × 50%)
= 6% + 3%
= 9%
Since we have to compute only current WACC so we considered the 50-50 ratio. Hence, we ignored 70% cost of debt
WACC shows a relationship between debt, equity and the preferred stock.
Answer:
current share price = $5.40
so correct option is C. $5.40
Explanation:
given data
dividends paid = 15 years
pay = $6 per share
increase = 4%
to find out
current share price
solution
we know that Value after year 15 will be = ( D15 × Growth rate) ÷ (required return - growth rate) ......................1
put here value
Value after year 15 = 
Value after year 15 = $52
so here current share price will be
current share price = Future dividends × Present value of discounting factor
current share price = 
current share price = $5.40
so correct option is C. $5.40
