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antoniya [11.8K]
3 years ago
10

Hairston Industries has $5 million of debt and $20 million of equity. If Hairston's beta is currently 1.75 and its tax rate is 4

0%, what is its unlevered beta, bU?
Business
1 answer:
nasty-shy [4]3 years ago
7 0

Answer:

The un levered beta ( bu) of the company is 1.52

Explanation:

Given information -

Equity  (E) - $20 million

Debt (D) - $5 million

Beta ( levered ) - 1.75

Tax rate ( T ) = 40%

D / E ( Debt to Equity ratio ) = $ 5 million / $20 million = .25

Formula for taking out un levered beta ( bu) is -

Beta levered ( bl ) = Beta un levered ( bu ) [1 + (1 - T ) D / E ]

1.75 = bu [1 + (1 - 40% ) .25

1.75 = bu [1 + .6 x .25 ]

1.75 = bu [ 1 + .15 ]

1.75 = bu [ 1.15 ]

bu = 1.75 / 1.15

bu = 1.52

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Answer:

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These unrestricted contributions of $22,000 used to support general services would be reported on the statement of cash flows as:

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Explanation:

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"Discuss the financial and operational implications for airlines as they try to offer the newest technology services?"
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Answer with Explanation:

The introducing of newest technology would definitely have financial and operational implications. These implications are given as under:

Financial implications

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Operational implications

  • Implementing a newest technology might improve the operational processes through which the customer go through, which would increase the customer satisfaction.
  • Implementation problems of newest technology.
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Mensa is a society for "geniuses." one way to qualify for membership is having an iq at least 2.5 standard deviations above aver
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According to the scale, an average person would posses the mean of 100 IQ <span>and standard deviation of  15. If to be a member of mensa one should have </span><span>an iq at least 2.5 standard deviations above average, the minimum iq should be: 
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2.5 = (x-100)/15

x = 137.5 >>>>> Less than 1% population belong to this IQ group or higher.


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2 years ago
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Answer:

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Which department managers in a hotel would benefit from understanding a bit about financial management? What should they know? W
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Explanation:

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