Answer:
High
Low
Explanation:
When a company borrows funds it has opportunity to avail tax shield on the interest amount of the borrowing fund. If the company borrows more fund then the discounted value of tax shield will increase while the financial distress cost will decrease.
Answer:
$785.34
Explanation:
The computation of the seller's share of the tax bill is shown below:
= Expected estate taxes for the year × number of days of the tax year ÷ total number of days in a year
= $31,50 × 91 days ÷ 365 days
= $785.34
We simply applied the proportionate method so that the approximate value could be arrived by taking all the information which is mentioned in the question.
Answer:
Canon’s managers believe in Diversity growth.
good luck
Answer:
$24,000
Explanation:
For computing the implied goodwill, first, we have to calculate the total partners capital and total firm capital
Total partners capital = $80,000 + $40,000 + $36,000
= $156,000
Now the total firm capital would be
= $36,000 ÷ 20%
= $180,000
Now the implied goodwill would be
= $180,000 - $156,000
= $24,000
Answer:
value of the firm = 21.20 million
value of the firm = 20.80 million
Explanation:
given data
current profits = $400,000
annual rate = 4 percent
opportunity cost = 6 percent
solution
we get here value of the firm before pays out current profits as dividend is express as
value of the firm = current profits ( 1+opportunity cost ) ÷ ( opportunity cost - annual rate ) ................1
put here value
value of the firm = 
value of the firm = 21.20 million
and
value of the firm after pays is
value of the firm = current profits ( 1+annual rate ) ÷ ( opportunity cost - annual rate ) ................2
value of the firm = 
value of the firm = 20.80 million
