Which tax is specifically charged on real estate?

SuperOil has a debt-to-value ratio of 15%. Its revenue is 100,000 per year and cost is 70,000 per year forever. Its cost of debt

SCORPION-xisa [38]

Answer:

a. The firm’s value is $88,909

b. The stock price is $7.56

c. The maximum premium SuperBuyout is willing to pay for SuperOil’s shares is $3,200

Explanation:

a. In order to calculate the firm’s value we would have to calculate the following calculation:

firm’s value=EBIT*(1-Tax rate)/WACC

EBIT*(1-Tax rate)=($100,000-$70,000)*(1-0.35)

EBIT*(1-Tax rate)=$19,500

WACC=weight of debt*cost of debt(1-t)+weight of equity*cost of equity

WACC=0.15*7*(1-0.35)+0.85*25

WACC=21.9325%

Therefore, firm’s value=$19,500/21.9325%

firm’s value=$88,909

b. In order to calculate its stock price we would have to calculate the following calculation:

stock price=Equity value/number of shares

Equity value=0.85*$88,909

Equity value=$75,572

Therefore, stock price=$75,572/10,000

stock price=$7.56

c. In order to calculate the maximum premium SuperBuyout is willing to pay for SuperOil’s shares we would have to make the following calculation:

maximum premium SuperBuyout is willing to pay=(stock price-value per share)*number of shares

maximum premium SuperBuyout is willing to pay=($7.56-$7.24)*10,000

maximum premium SuperBuyout is willing to pay=$3,200

6 0

3 years ago

g In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in th

solniwko [45]

In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be: A. decreased

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

This refers to the prediction about a particular thing that is to occur in the future based on available data or inference.

Hence, we can see that based on the use of the moving average technique when increasing the responsiveness of a forecast, there must be a decrease in the average of the data points because fewer data points result in more responsive moving averages.

Read more about moving average techniques here:

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6 0

2 years ago

The definition of inventory includes which of the following items? (Select all that apply.) a) items used currently in the produ

Yanka [14]

Answer:

Items a) and b)

a) items used currently in the production of goods to be sold items

b) held for resale items currently in production for future

Explanation:

Inventory consists of current assets to be used in production of final goods or are the ones which are final goods and held for sale.

In the given case also, statement a includes raw materials, which are used to make the final good to be sold, which is a part of inventory.

Further, statement b includes work in production or final goods which are currently in production but would be resold.

The items which are kept for their use as like machinery or furniture or which shall be disposed are not inventory but are in fixed assets category.

3 0

4 years ago

What is an external force that affects businesses? motivated employees motivated employees advances in technology advances in te

Murljashka [212]

Advances in technology are an external force that affects businesses.

External factors are those over which a firm or business has little control like government policy, technology, economic conditions, etc.

So, advances in technology would fall under the external factor.

Businesses need people, talented leaders, or even a mission to run their business smoothly and efficiently.

All of these factors are internal to the company,

but one of the external forces is technological advancement.

This, like government policy and social issues, is outside company boundaries. Rather, they are outside the organization and become external factors.

When we say “external force” we mean everything outside the company. This means that one of the external forces affecting companies is technological progress. So the correct answer is the first option.

Learn more about external force at

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3 0

2 years ago

Assume your employer offers a bonus of $7200. The only catch is that you must wait 6 years to take possession of the money. If y

a_sh-v [17]

Answer:

The minimum would be the present value of the bonus, which is 5,075.72 dollars

Explanation:

we have to discount the 7,200 dollar bonus at 6% discount rate for 6 years to get the present value of the bonus:

$\frac{Maturity}{(1 + rate)^{time} } = PV$