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iogann1982 [59]
3 years ago
9

Eccles Inc., a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0%

debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. Refer to the data for Eccles Inc. What is the value of the firm according to MM with corporate taxes?
Business
1 answer:
Feliz [49]3 years ago
6 0

Answer:

$587,500

Explanation:

You are required to calculate the value of the levered firm;

vL = vU + Dt, whereby;

vL = Value of levered firm

vU = value of unlevered firm

Dt = debt * tax ; which is the tax shield

Find value of unlevered firm;

vU = [EBIT(1-tax) ]/ rE

    = [100,000(1-0.30)] / 0.16

    = 437,500

Value of levered firm;

vL = 437,500 + (500,000*0.30)

   = 437,500 +150,000

   = $587,500

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Answer and Explanation:

The summary of the process cost involves the physical flow of units, equivalent units of production, cost per equivalent unit, and the total cost assignment to the units worked on the given time period

Only these four things would be shown in the summary of the process cost

Other than this would be ignored

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Can I Plss get some help on this
Verdich [7]

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This means that there will be less money in the economy which will reduce inflation because less money means less demand for goods and services.

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1 year ago
Pega if report is created in myco-hr-selfservice-work, what instances will the report return?
Yakvenalex [24]

Since a subclass can inherit the variables or methods of the superclass, the instances which the report will return is: B. MyCo-HR-SelfService-Work-TimeOff and MyCo-HR-SelfService-Work-Expense.

<h3>What is a class?</h3>

A class can be defined as a user-defined blueprint (prototype) or template that is typically used by software programmers to create objects and define the data types, categories, and methods that should be associated with these objects.

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Since a subclass can inherit the variables or methods of the superclass, the instances which the report will return is "MyCo-HR-SelfService-Work-TimeOff and MyCo-HR-SelfService-Work-Expense" because they are declared within the class group.

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Complete Question:

Consider the following Work-derived classes that belong to the same class group:

MyCo-HR-SelfService-Work

MyCo-HR-SelfService-Work-TimeOff

MyCo-HR-SelfService-Work-Expense

There are no instances of MyCo-HR-SelfService-Work.

If a report is created in MyCo-HR-SelfService-Work, what instances will the report return?

Group of answer choices.

A. MyCo-HR-SelfService-Work-TimeOff and MyCo-HR-SelfService-Work-Expense, only if the "Report on Descendant Class Instances" checkbox is selected

B. MyCo-HR-SelfService-Work-TimeOff and MyCo-HR-SelfService-Work-Expense

C. No records

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5 0
1 year ago
Whats the meaning of oligopoly and monopoly market structure​
leonid [27]
Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. A monopoly is one firm, a duopoly is two firms and an oligopoly is two or more firms.
6 0
2 years ago
Read 2 more answers
Micron owns 35% of Martok. Martok pays a total of $47,000 in cash dividends for the period. Micron's entry to record the dividen
creativ13 [48]

Answer:

1. Option (A) is correct.

2. Option (C) is correct.

Explanation:

1. Micron's entry to record the dividend transaction is as follows:

Cash A/c      Dr. $16,450

To Long - Term Investments  $16,450

(In this case, since the holding interest is more than 20%, Equity method is used)

workings:

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2. The entry to record the receipt of dividend would be:

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To Dividend Revenue A/c   $12,000

(To record the receipt of dividend)

Workings:

Dividend = 3,000 shares × $4 per share

               = $12,000

4 0
3 years ago
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