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pickupchik [31]
3 years ago
6

Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure th

at has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. Compute the revised equity beta for Zonk based on the new capital structure.
Business
1 answer:
ivanzaharov [21]3 years ago
5 0

Answer: 4.35

Explanation:

The revised equity beta for Zonk based on the new capital structure will be gotten as follows:

= 1.13 × [1 + (1 - 35%)][70% /30%]

= 1.13 × [1+(1-0.35)][0.70/0.30]

= 1.13 × [1 + 0.65][2.33]

= 1.13 × (1.65)(2.33)

= 4.35

Therefore, the revised equity beta for Zonk is 4.35.

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Use the following table for the problem below.
baherus [9]

Answer:

No option is correct:

  • A. Larry offers Curly 1 ping-pong ball for 1/4 of a hat.
  • B. Curly offers Larry 1 hat for 3 ping-pong balls.
  • C. Curly offers Larry 1 hat for 4 ping-pong balls.
  • D. Larry offers Curly 1 ping-pong ball for 1/3 hat.

In order for Curly to win and Larry lose, Curly must offer 1 hat in exchange for 6 or more ping-pong balls.

  • Option A: Larry wins 1 ping-pong ball.
  • Option B: Larry wins 2 ping-pong balls.
  • Option C: Larry wins 3 ping-pong balls.
  • Option D: Larry wins 0.13 of a hat.  

Explanation:

Opportunity costs are the benefits lost or extra costs associated to choosing one investment or activity over another alternative.

In this case, Larry can either have 1 hat or 5 ping-pong balls. Curly can have 1 hat or 2 ping-pong balls.

6 0
3 years ago
Newly issued securities are sold to investors in which one of the following markets?A. ProxyB. InsideC. SecondaryD. Primary
Harrizon [31]

Answer:

D. Primary

Explanation:

The newly issued securities are first sold to the investors of the primary market .

The primary market id responsible for issuing the securities for the exchange of the company , or other groups .

The primary market are run by the underwriting groups which includes the investment banks .

Hence , from the information of the question , the correct term is ( d. ) Primary market .

7 0
3 years ago
Skysong, Inc. had net credit sales during the year of $1090600 and cost of goods sold of $604000. The balance in accounts receiv
Xelga [282]

Answer:

8.2

Explanation:

Accounts receivable turnover measure the average times the company received their receivable, It measure the efficiency of the company regarding collection from customers. Turnover will be higher if company has low ratio of receivables to sales value.

Average Receivable can be calculated as below

Average Receivable = (Accounts Receivable at the beginning of the year +  Accounts Receivable at the end of the year) / 2 = ($114000 + $152000)/2 = $133,000

Net Sales = $1,090,600

Formula for Accounts receivable turnover is as follow

Accounts receivable turnover = Net Sales  / Average Receivable

Accounts receivable turnover = $1,090,600  / $133,000 = 8.2 times

4 0
4 years ago
1. Why is it important to be able to write out a check properly ?
krok68 [10]

Answer:

yes is very predominant

Explanation:

because you can find out that you have done mistakes and submit incorrect work,, is very important to check more than twice to make sure you didn't do anything wrong

7 0
3 years ago
What are the relative merits of three trade agreements and alliances?
IgorLugansk [536]

What are the relative merits of three trade agreements and alliances? WTO governs international trade. NAFTA is with North America. EU is Europe's trading bloc.

Trade agreements are essentially pacts between various countries that allow of trade between them. The trade is constructed and based on setting up tax, tariff and treaty agreements that allow for the participants to have investments within the trade. Two or more countries participate on the terms of their trade agreements which allows them to trade with one another.

8 0
3 years ago
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