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
Art [367]
3 years ago
11

BDE Inc. is an unlevered firm which expects to generate a net cash flow of $25 million per year in perpetuity. The firm’s requir

ed return on equity is 10%. Assume that the Modigliani and Miller assumptions hold. (15 points) For questions 27 and 28 assume that the corporate tax rate is zero. 27. What is the value of the unlevered firm?
Business
1 answer:
anzhelika [568]3 years ago
7 0

Answer:

$250 million

Explanation:

If taxes do not exist and the firm has no outstanding debt, then the value of unlevered firm = total enterprise value of BDE

we can use the perpetuity formula to determine the total enterprise value:

total enterprise value = FCF / cost of equity

total enterprise value = $25 million / 10% = $250 million

You might be interested in
Leaders as good role models must walk the talk. this means they must be ________ in their words and actions. a. consistent b. ef
kvv77 [185]

Leaders must be consistent in their words.

  • There are many advantages to being an ethical leader. Leaders can influence their community to act morally by working together. Others will be inspired to emulate your moral behavior if you set an example for them and offer guidance. Moral leaders can influence a large number of people for the better by presenting them with a course of action that will benefit everyone.
  • For personal credibility and reputation, it is essential to be an ethical leader. Being a leader takes time and effort. Being unethical can seriously damage a leader's or their organization's reputation and immediately remove them from the A-league.
  • A person's self-esteem is frequently harmed by unethical behavior, which leads to a less than ideal outcome and a missed opportunity to reach one's full potential.

Thus a Leader must be consistent in their words.

To learn more about leadership, refer: brainly.com/question/12522775

#SPJ4

3 0
2 years ago
Read 2 more answers
- Strategic planning as a broad concept consists of
jek_recluse [69]
B) Strategy formulation and strategy implementation.


It summarizes the process through which companies and organizations sets a list of goals, evaluate strategies, select strategies and implement them for evaluation.
5 0
3 years ago
How do large corporation can help during the health crisis?​
Nesterboy [21]

Answer:

they can donate

Explanation:

they can donate money and other stuff to

6 0
3 years ago
I have uploaded data (PCE-PDI.xls) for the US total personal consumption expenditures and total disposable income from 1971:1 to
Kryger [21]

Answer:b

Explanation:

5 0
3 years ago
List one thing you SHOULD do if your car loan suddenly becomes too expensive.
Sphinxa [80]

Answer:

Modify Your Auto Loan.

Refinance Your Vehicle Loan.

Trade-in Your Car.

Let Someone Else Assume Your Loan.

Sell Your Vehicle.

Turn the Keys In.

Let Your Car Be Repossessed.

File for Bankruptcy.

5 0
3 years ago
Other questions:
  • What are 2 tools you can use to identify possible issues in a QuickBooks Online Company?
    12·1 answer
  • Inflation is a decrease in the average price level in the economy.
    9·1 answer
  • Bob, a weak swimmer, ignored warning signs in a recreational swimming area and went into deep water. He soon grew tired and real
    9·1 answer
  • His supervisor asked Michael to generate a PowerPoint presentation for the Thursday team meeting. On Thursday, Michael showed up
    6·1 answer
  • At the beginning of the period, the Cutting Department budgeted direct labor of $136,000, direct materials of $156,000 and fixed
    10·1 answer
  • Gmeiner Co. had the following current assets and liabilities on December 31 of two recent years: Current Year Previous Year Curr
    15·1 answer
  • The ___________________Party believes in individual freedom and that the only purpose of government is to protect this freedom.
    13·1 answer
  • U.S. GAAP for long-lived assets significantly impedes rate-of-return comparisons across companies unless the firms:
    9·1 answer
  • The law of supply indicates that other things equal:.
    13·1 answer
  • jason went to an automobile dealership to buy a car, and he spent two hours talking to an employee about options. this element o
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!