Answer:
The unlevered value of the firm is $869325.15
Explanation:
For computing the value of unlevered firm, the following formula should be used which is shown below:
Value of levered firm = Earning before interest and taxes × (1 - tax rate) ÷ cost of equity
where,
Earnings before income and taxes are $218,000
Cost of equity is 16.3%
And, the tax rate is 35%
Now put these values on the above formula
So, the value would be equals to
= $218,000 × (1 - 0.35) ÷ 16.3%
= $141,700 ÷ 16.3%
= $869325.15
The other terms like bonds and the annual coupon should not be considered in the computation part because we have to calculate for unlevered firm which only includes equity and the bond is a debt security. Thus, it is irrelevant.
Hence, the unlevered value of the firm is $869325.15
Answer:
B to provide information
Explanation: when making a point your trying to express something
Answer:
a. increased available credit
c. increased money supply
f. decreased interest rates
Explanation:
Expansionary policy is a policy pursued by either the government or the monetary authority to stimulate aggregate demand in the economy. This can be achieved through the use of either the fiscal policy tool by the government or the monetary policy tool by the Federal Reserve.
The policy target of expansionary policy are any of the economic goals of the government, such as economic growth, control of inflation, favorable balance of payment, e.t.c.
In a closed-fact problem, the main goal of tax research is to: find support for an action the taxpayer has already taken.
Explanation:
When filing a tax return, many people are medically supported. Strong tax research skills are even greater because of their complexity and application in tax law. The purpose of this chapter is to provide information and advice on tax compliance analysis as well as tax planning. In addition, the technique of tax analysis is quite similar to accounting and auditing.
The aim of tax research is to increase the profit or gains of the taxpayer. The aim is not to generate the minimum tax liability potential. Customers should determine the accuracy of tax returns or try to minimize possible IRS conflicts.
This difference of perspective — to optimize after-tax gains instead of reducing taxation — is particularly important when one considers that many tax planning techniques require such pre-tax income transfers, either in the form of additional expenditures, income avoidance or both.
