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Marrrta [24]
3 years ago
10

Underground Clothing is a zero growth firm that has expected earnings before interest and taxes of $56,700, an unlevered cost of

capital of 16.2 percent, and a tax rate of 35 percent. The company also has $9,500 of debt that carries a coupon rate of 7 percent. The debt is selling at par value. What is the value of this firm
Business
1 answer:
koban [17]3 years ago
7 0

Answer:

$230,825

Explanation:

VU = [$56,700 × (1 - .35)] / .162

VU= $56,700×0.65/.162

VU=36,855/.162

VU = $227,500

VL = $227,500 + .35($9,500)

VL= $227,500+$3,325

VL= $230,825

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Explanation:

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During the past five years, the nation of Andolvia began a massive undertaking: teaching farmers how to successfully grow and ha
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The correct answer is (D) Import quotas

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3 years ago
What is the difference in accounting treatment of unrealized gains and losses across these three categories of investments
hammer [34]

Answer:

Unrealized gains and losses treatment:

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Explanation:

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2 years ago
German and Japanese firms are viewed as having a _____ advantage in exporting compared to U.S. firms.
e-lub [12.9K]

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bigger is the correct answer.

Explanation:

4 0
2 years ago
the cost of land improvements are capitalized separately from land because land improvements tend to have a useful life.
lisabon 2012 [21]

Land improvements are capitalized separately from Land because land improvements have only a limited useful life.

Land is a special fixed asset which means that:

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Land improvements on the other hand, will not last forever. They will eventually wear out and need to be replaced. They are therefore capitalized separately from land so that they can be depreciated if need be.

In conclusion, land improvements are capitalized separately from land because they have a limited useful life.

<em>Find out more at brainly.com/question/14436052.</em>

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