Answer: SEE EXPLANATION
Explanation:
Given the following ;
Values depending on Success
$150M, $135M, $95M, $80M
Risk free rate = 5% = 0.05
Pervebtage to be lost in case of bankruptcy = 25% = 0.25
A.) 0.25 × [( 150 + 135 + 95 + 80) ÷ 1.05] = $109.52 million
Assume a zero-coupon debt with a $100million face value
B.) 0.25 × [( 100 + 100 + (95×0.75) + (80×0.75)) ÷ 1.05] = $78.87 million
C.) Yield to maturity (YTM)
(100M÷78.87M) - 1
1.2679 - 1 = 0.2679 = 26.79%
Expected return = 5%
D.) Equity value
0.25 × [( 150 + 135 + (95×0.75) + (80×0.75)) ÷ 1.05] = $99.11 million
E.) share if no debt is issued
109.52 ÷ 10 = 10.95 per share
F.) Share price if debt of $100M is issued
99.11 ÷ 10 = 9.91 per share
The price differs because bankruptcy cost will Lower the share price.
Answer and Explanation:
Sales = $175,000
Less: Cost = $93,000
Gross Profit = $82,000
Less: Depreciation = $24,800
EBT = $57,200
Less: Tax [email protected]% = $13,156
EAT = $44,044
a). OCF = EBIT + Depreciation - Taxes
= $57,200 + $24,800 - $13,156
= $68,844
b). OCF = [(sales - costs - Depreciation) * (1 - T)] + Depreciation
= [($175,000 - $93,000 - $24,800) * (1 - 0.23)] + $24,800
= $68,844
c). OCF = [(sales - costs) * (1 - T)] + [Depreciation * T]
= [($175,000 - $93,000) * (1 - 0.23)] + [$24,800 * 0.23]
= $68,844
d). OCF = Net income + depreciation
= $44,044 + $24,800
= $68,844
The type of venue that small-business retailers favor is C.SPECIALTY SHOP.
Being in a specialty shop, your products will be prominently displayed and competition is minimal <span>compared to other given venues.
Customers, looking for specific items that you can offer, usually prefer going directly to the shops instead of wasting time looking around those bigger venues searching for items they need. </span>
Correct/Complete Question:
Industrial societies use machinery and energy sources rather then humans and animals for production and __________ societies use the creation, processing, and storage of information for production.
Answer:
Post-industrial
Explanation:
There are stages of development of a society and one of those stages is post-industrial society.
Post-industrial societies are societies in which societal production is as a result of creation, processing and storage of information. Simply put, Post-industrial societies are societies in which service provision creates more wealth than manufacturing. This services are done through information creation, processing and storage as written above.
Cheers
Giving back.
Copying.
Returning a favor.
