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dimaraw [331]
3 years ago
5

L.A. Clothing has expected earnings before interest and taxes of $63,300, an unlevered cost of capital of 14.7 percent, and a co

mbined tax rate of 23 percent. The company also has $11,000 of debt that carries a coupon rate of 7 percent. The debt is selling at par value. What is the value of this company? Multiple Choice $342,579 $284,108 $334,101
Business
1 answer:
umka21 [38]3 years ago
3 0

Answer:

Value of the company is $334,101

Explanation:

Value of unlevered firm = \frac{EBIT(1-t)}{ke}

Where;

EBIT = Earnings before interest and tax

t = tax rate

ke = Cost of equity (cost of capital)

Value of unlevered firm = \frac{63,300(1-0.23)}{0.147}

value of unlevered firm = $331,571.43

Value of firm = Value of unlevered firm + Debt (tax rate)

Value of firm = $331,571.43 + $11,000*(23%)

Value of firm = $334,101.43

Value of firm = $334,101

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<h3>What is B2B mean in marketing?</h3>

Business-to-business (B2B) refers to a form of transaction between businesses, such as one involving a manufacturer and wholesaler or between a wholesaler and a retailer. Business-to-business is conducted between companies, instead of a company and individual consumer.

It is to be noted that business to business marketing is required when one company's output is required for another company to maintain or improve its operations.

Hence, it is false that Business-to-business (B2B) marketing refers to buying and selling goods or services to consumers.

Learn more about B2B marketing here : brainly.com/question/24749141

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2 years ago
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Answer:

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6 0
3 years ago
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Dawn grew up helping her father work on cars in his auto repair shop and developed into an excellent auto technician. Because of
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Answer: The stereotypes have led Dawn to seek out companies that value Gender Egalitarianism. Therefore the answer is TRUE. Option A.

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Gender Egalitarianism can also be referred to as Gender Equality.

In a society with high Gender Egalitarianism, the following can be observed:

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3 0
3 years ago
According to the Huff Gravity Model, the two factors which attract consumers to a store location are: travel time for customer t
azamat

Answer:

The correct answer would be option B, The attractiveness of the store's location and the time it takes to travel to the store.

Explanation:

According to the Huff Gravity Model, The two factors which attract customers to a store location are the attractiveness of that store's location and the time it takes to travel to the store.

This means that according to the Huff theory, people will likely to purchase from a store which is present at a more attractive location and also the time taken to reach at that specific store is less. For example, I myself prefer going to Lulu Hypermarket over Panda Hypermarket because of the difference in the location of both the stores and also Lulu Hypermarket is more near to me than Panda Hypermarket. The location of Lulu is more attractive.  

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Answer:

The correct answer is: $60.

Explanation:

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In Ben's case, the opportunity cost of going to the event represents what he could have earned working for three hours (<em>$10 x 3 = $30</em>). However, as he will have to pay for the event, he will lose $30 for the event ticket. Then, the total opportunity cost of going to the event is:

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3 years ago
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