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Yuliya22 [10]
3 years ago
13

What is the equity beta for a firm with asset beta equal to 0.9, and D/E ratio of 0.4, and tax rate equal to 35%?

Business
1 answer:
NNADVOKAT [17]3 years ago
3 0

Answer:

the equity beta of the firm is 1.134

Explanation:

The computation of the equity beta is shown below:

Equity beta is

= Asset beta × [1 + (1 - tax rate) × Debt-equity ratio]

= 0.9 × [1 + (1 - 0.35) × 0.4]

= 0 9 × 1.26

= 1.134

Hence, the equity beta of the firm is 1.134

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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kati45 [8]

Answer:

Quản lý chuỗi cung ứng là quá trình quản lý sự di chuyển của nguyên vật liệu thô và các bộ phận từ khi bắt đầu sản xuất cho đến khi giao hàng đến tay người tiêu dùng. Trong nhiều tổ chức, các quyết định về chuỗi cung ứng vận hành được đưa ra hàng trăm lần mỗi ngày ảnh hưởng đến cách sản phẩm được phát triển, sản xuất, di chuyển và bán. Mức độ phức tạp của chuỗi cung ứng thay đổi theo quy mô của doanh nghiệp cũng như mức độ phức tạp và số lượng của các mặt hàng được sản xuất, nhưng hầu hết các chuỗi cung ứng đều có các yếu tố chung, chẳng hạn như sau

Explanation:

Làm ơn đi

4 0
3 years ago
6. The DAP Company has decided to make a major investment. The investment will require a substantial early cash out-flow, and in
Trava [24]

Answer:

The DAP Company

Current price per share:

Current price = Current Dividend (D0) / (WACC - Growth Rate)

= $2/ (0.10 - 0.06) = $50

Explanation:

The technique used to value the share price is called the Dividend Discount Model (DDM).  The Myron Gordon model of this DDM is popularly used.

This model states that the current price of a share is the Current Dividend (D0) divided the difference between the cost of capital and the growth rate.

The result is the intrinsic value of the stock.  The model assumes that dividends are paid in perpetuity and that the growth rate is constant over many years.

These remain assumptions as the real life offers quite different scenarios.  There is no company that pays dividend every year in perpetuity.   A company's growth rate is never constant year on year.

4 0
3 years ago
An inexperienced accountant for Indigo Corporation showed the following in the income statement: income before income taxes $321
KATRIN_1 [288]

Answer:

$276,978

Explanation:

Statement of comprehensive income

Income before income taxes: $321,000

Income taxes expenses: $321,000*33%= $105,930

Net Income/loss= $321,000-$105,930

=$215,070

Other comprehensive income

unrealized gain on available-for-sale securities

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=$92,400-$30,492

=$61,908

Comprehensive income:

$215,070+$61,908=$276,978

8 0
4 years ago
Link Company uses a process cost system and the weighted average method. During the year the company completed 1,300 units of pr
Bumek [7]

Answer:

Cost per equivalent unit: $60

Explanation:

Cost per equivalent unit = (Cost of Beginning Work in Progress Inventory + Total production cost during the period) / Equivalent Units of Production (EUP)

Total Production Cost = $90,000

Equivalent Units of production (EUP) = 1,300 + 400 x 50% = 1,500 units

Cost per equivalent unit: $90,000 / 1,500 units = $60

7 0
3 years ago
The capabilities used to create the sustainability/green initiatives at walmart and target are ______ but less likely to be ____
AleksandrR [38]

Answer:

Valuable; Rare

Explanation:

The Green Building Initiative (GBI) can be seen as an initiative international effort towards creating sustainable, resource-efficient buildings.

Therefore Sustainability tend to focus on meeting the needs of the present without been compromising the ability of future generations in order to meet their needs.

Therefore The capabilities used to create the sustainability/green initiatives at walmart and target are VALUABLE but less likely to be RARE

6 0
3 years ago
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