1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Law Incorporation [45]
2 years ago
7

Copybold Corporation is a start-up company that has a capital structure with a debt/assets ratio equal to 0.75. Copybold has no

preferred stock. There are two possible scenarios with respect to the firm's operations : Feast or Famine. The Feast scenario has a 60 percent probability of occurring, and the forecast earnings before interest and taxes (EBIT) in this scenario is $60,000. The Famine scenario has a 40 percent chance of occurring, and the EBIT is expected to be $20,000. Further, the firm's cost of debt is 12 percent. The firm has $400,000 in total assets, and its marginal tax rate is 40 percent. The company has 10,000 shares of stock outstanding. What is the difference between the earnings per share (EPS) forecasts for the Feast scenario and the Famine scenario
Business
1 answer:
galben [10]2 years ago
8 0

Answer:

The value of the difference between the earnings per share (EPS) forecasts for Feast and Famine is $2.40

Explanation:

The solution is as evident in the attached Excel Sheet. In the excel sheet the formulas are used which are also given in the second sheet.

For the data values from the question are used.

You might be interested in
you are writing a long, complex document in which you need to explain a series of events that led to a problem, evaluate several
hjlf

Answer:

Hi

Explanation:

What organizational pattern would probably be most effective for arranging the main points of a speech with the specific purpose "To inform my audience about three major ways to block junk mail from their e-mail system"? chronological order.

7 0
2 years ago
Two examples of generally accepted accounting principles are:
tresset_1 [31]
The answer to this question is: <span> accounting for leases and accounting for fair value assets
Leases and fair value assets is often used by companies in order to make their company valuation seem higher than it supposed to be. So, standardized rules regarding the proper way to make the valuation should be written under the Generally accepted accounting principles.</span>
8 0
3 years ago
At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites
Kobotan [32]

Answer:

False

  • At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites with <u>DECENTRALIZED</u> planning , using planning experts to help store managers develop their own plans.

Explanation:

In a corporation, decentralized planning means that some planning functions and decision making processes are delegated to lower level managers.

In this case, MultiMarkets' upper management is delegating planning functions to local store managers as a way to respond to an increase in online retailing.

4 0
3 years ago
Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 24 years. To assess the value of the
Anon25 [30]

Answer:

101.12 million

Explanation:

<em>The present value of a future cash flow is the amount that can be invested today at a particular rate for a certain number of years to have the future cash flow </em>

The present value of the liability

= FV × (1+r)^(-n)

= 800  × (1.09)^(-24)

= 101.12 million

The present value of this liability= 101.12 million

7 0
3 years ago
Read 2 more answers
If it costs $100000 to put on an event for four weeks (28 consecutive nights) how much revenue per night is needed to make $2000
12345 [234]

Answer:

the answer would 4285.7142 per night

8 0
3 years ago
Read 2 more answers
Other questions:
  • Glenda is in the ninth grade, and she loves to write and share events that take place around her. She wants to become a journali
    6·1 answer
  • ______________ organizations scatter it components in different locations to address local business needs.
    13·1 answer
  • If input prices are constant in the long​ run, a firm with decreasing returns to scale can expect A. total costs to decrease whe
    6·1 answer
  • A long term care facility purchases at least 85% of its food and supplies from one distributor. this is an example of which type
    5·1 answer
  • On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had
    9·1 answer
  • A new restaurant has introduced a wildly popular macaroni and cheese dish made with goat cheese. however, at approximately the s
    10·2 answers
  • The cost of a longminus term debt generally​ ________ that of a shortminus term debt. A. is less than B. is equal to C. is less
    11·1 answer
  • If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold.
    9·1 answer
  • At June 30, Almond Co.'s cash balance was $10,012 before adjustments, while its ending bank statement balance was $10,772. Check
    12·1 answer
  • Explain the art of negotiating and an example to go with. :) ( A situation within very sophisticated work, mhm.)
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!