False that just don’t make since lol
Answer:
$601,600
Explanation:
$601,600 is Malone Bank's profit or loss from speculation if the spot rate 60 days from now is indeed $0.78.
I hope it will help you!
Answer and Explanation:
The computation is shown below:
Given that
EBIT = $40,000
Unlevered cost of capital = 14%
Cost of debt = 8%
tax rate = 35%
based on the above information,
(i)
(a) Current firm value is
Value of a perpetuity = FCFF ÷ Cost of capital
where,
cost of capital= cost of equity
= $40,000 ÷ 14%
= $285,714
b. And, the equity value would be $285,714 as the present debt is zero