Part II. Explain the following concepts:

Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $628,000. The curren

ArbitrLikvidat [17]

Based on the information given the levered value of the firm is $3,824,318.

First step is to calculate the Unlevered firm value

Unlevered firm value = EBIT(1 - Tax) / Cost of equity

Unlevered firm value= $628,000 x (1-.35)/.176

Unlevered firm value = $628.000×.65/.176

Unlevered firm value = $2,319,318

Second step is to calculate Levered firm value

Levered firm value = Unlevered firm value + (Tax rate× Debt))

Levered firm value= $2,319,318 + (.35 x $4,300,000)

Levered firm value= $2,319,318 +$1,505,000

Levered firm value = $3,824,318

Inconclusion the levered value of the firm is $3,824,318.

Learn more about levered value here:brainly.com/question/20067496

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2 years ago

What is a type of short-term financing that consists of unsecured promissory notes that mature in 270 days or less? Multiple Cho

Ksenya-84 [330]

Answer:

Commercial paper

Explanation:

Commercial paper is a term in business or economics that describes money-market security issued by corporation, which is considered unsecured, so as to obtain funds to meet short-term debt or obligation, such as financing of payroll, and inventories.

It is supported only by issuing bank or company promise to pay the face amount on the maturity date often 270 days or less, as specified on the note.

Hence, COMMERCIAL PAPER is a type of short-term financing that consists of unsecured promissory notes that mature in 270 days or less.

4 0

3 years ago

Harold's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its

Pavel [41]

Answer:

Demographic

Explanation:

Harry's caters to the clothing needs of men, manufacturing two different lines of fashion based on the purchasing power of its customer . One product line caters to the needs pf affluent , middle-aged men , and the other line targets younger , up -and - coming professionals . Harry's most likely segments the consumer market is based on demographic variables.

The statistical data of the population of the people is known as demographics . Demographics contain age , gender , income etc.

Demographic is important for the company as it help the company to tell about how to market and how to develop the brand. It helps in telling the behavior of the customer towards the product means whether the people liking the product or not liking the product . It is consider as the best way to reach to the people and know about their preference for the product.

8 0

3 years ago

People who are high on authoritarianism do not do well

____ [38]

Answer:

(D) In organizations where employees expect clear directions.

Explanation:

Authoritarianism is coined from the word "authority". Authoritarianism is a system of ruling whereby the leader (Authoritative person or Dictator) gives all orders and doesn't expect to be questioned or argued with.

In organizations where employees expect clear directions, people who are high on authoritarianism will not do well, since they could switch orders indefinitely and expect no one to argue with them.

An authoritative boss could say that members of a department should submit their files to his desk by 3pm and then change his mind an hour to the deadline and send a new instruction that those employees should gather for a meeting (without their files) by 3pm.

Such confusion will impede the smooth running of day-to-day activities in that organization; especially as no one challenges the leader.

4 0

2 years ago

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Which of the following is an example of part-time business? a. Tabatha, who works from home for a fashion website for a minimum

Brut [27]

Answer: The answer is C. Dorothy, who works in her small bakery for less than 30 hours a week.

Explanation: A part-time business can't exceed 35 hours a week.

3 0

3 years ago

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