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Kazeer [188]
3 years ago
10

Alpha Company is looking at two different capital​ structures, one an​ all-equity firm and the other a levered firm with ​$2.52

million of debt financing at 14​% interest. The​ all-equity firm will have a value of ​$4.2 million and 420 comma 000 shares outstanding. The levered firm will have 168 comma 000 shares outstanding.a.  Find the​ break-even EBIT for Alpha Company using EPS if there are no corporate taxes.b.  Find the​ break-even EBIT for Alpha Company using EPS if the corporate tax rate is 35​%.c.  What do you notice about these two​ break-even EBITs for Alpha​ Company?
Business
1 answer:
horrorfan [7]3 years ago
4 0
Look on jiskha you will find your answer I promise
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You’ve recently learned that the company where you work is being sold for $300,000. The company’s income statement indicates cur
chubhunter [2.5K]

Answer:

5%

Explanation:

Data provided in the question:

Present value of the company, PV = $300,000

Current Profits, π₀ = $11,000

Interest rate, i = 9% = 0.09

Now,          

we know,            

PV = \pi_0(\frac{1+i}{1-g})

here,

g is the growth rate        

on rearranging, we get          

g =  i - \frac{(1+i)\pi_0}{PV}

on substituting the respective values, we get

g = 0.09 - \frac{(1+0.09)\times11,000}{300,000}

or  

g = 0.05

or

g = 0.05 × 100%

= 5%

7 0
3 years ago
Suppose you just won the state lottery, and you have a choice between receiving $2,575,000 today or a 20-year annuity of $250,00
Shkiper50 [21]

Answer:

Ans. rate of return= 7.37%

Explanation:

The easiest way to find this discount rate is to set a MS Excel sheet and use the function "Find Goal". In the attachments, there is a spreadsheet that I got ready for you. There are 2 cells in color, one is yellow and the other one is green. You just go ahead and replace the value of the green cell with any percentage that you want, for example, 2%, then use the function "find goal" and set the objective cell to be the yellow cell (B5), changing the cell in green (B7), and hit enter.

Best of luck.

Download xlsx
8 0
2 years ago
Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwe
Otrada [13]

Answer:

Geographic segmentation

Explanation:

it is strategy related to geographic segmentation. it include strategy to provide all those facilities to the customer on the basis of location of customers. As it is given in question Hilton hotels provide more sleeker rooms in northeastern side while more rustic hotels in southwestern hotels.

In generally speaking, geographic segmentation strategy totally based on the preference of targeted customers.

Example of Geographic segmentation approach include  large production of raincoats to those areas that experience heavy rainfall etc

4 0
3 years ago
Green et al.​ (2005) estimate that the demand elasticity is minus0.47 and the​ long-run supply elasticity is 12.0 for almonds. T
Ronch [10]

Answer:

The numeric response for the question using real numbers rounded to one decimal​ place is given as below.

Explanation:

Tax incidence for almonds is (12 / (12 + 0.47)) = 0.96

for cotton (0.73 / (0.73 + 0.68)) = 0.52 and

for processing tomatoes is (0.64 / (0.64 + 0.26)) = 0.71

5 0
2 years ago
Which of the following is an example of a soft skill?
Stolb23 [73]

Answer:

c because you have to work with people and that is a soft skill

8 0
2 years ago
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