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3 years ago

9

Assume that we are in the MM world. The beta of an all-equity firm is 1.4. Suppose the firm changes its capital structure to 40

percent debt and 60 percent equity. What is the equity beta of the levered firm

1 answer:

balu736 [363]3 years ago

8 0

Answer:

2.3

Explanation:

Levered Beta = Unlevered Beta x (1+D/E)

D/E = Debt-to-Equity Ratio

1.4 x (1 + 04 / 0.6) = 1.4 x 1.667 = 2.3

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3 years ago

Luis has $170,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis

serious [3.7K]

Answer:

Luis will have $ 1,153,675.657524 in his account at the time of his retirement.

Explanation:

Acording to the data Luis has $170,000 in his retirement account

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Acording to the data Luis also plans to put $2000/quarter into the new account until his retirement 30 years from now.

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Total amount = Current account+FV

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3 years ago

On January 1, Wei company begins the accounting period with a $45,000 credit balance in allowance for doubtful accounts. a. On F

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Answer:

The Journal entry and their narrations is shown below:-

Explanation:

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3 years ago

Read 2 more answers