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ki77a [65]
3 years ago
10

Calvert Corporation expects an EBIT of $23,300 every year forever. The company currently has no debt, and its cost of equity is

14.3 percent. The company can borrow at 9.1 percent and the corporate tax rate is 25 percent. a. What is the current value of the company
Business
1 answer:
Gnesinka [82]3 years ago
7 0

Answer:

Missing <em>"b-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value?  b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?"</em>

a. Current value of the company = EBIT*(1-t) / Ke

Current value of the company = $23,300*(1-0.25) / 0.143

Current value of the company = $23,300*0.75 / 0.143

Current value of the company = $17,475 / 0.143

Current value of the company = $122202.7972027972

Current value of the company = $122,202.80

So, the current value of the company is $122,202.80.

bi. Value of the company = $122,202.80 + (0.25*$122,202.80*0.5)

Value of the company = $122,202.80 + $15,275.35

Value of the company = $137,478.15

bii Value of the company = $122,202.80 + (0.25*$122,202.80*1)

Value of the company = $122,202.80 + $30,550.7

Value of the company = $152,753.5

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Simora [160]

Answer:

The correct answer is letter "C": Involve farming out value chain activities presently performed in-house to outside specialists and strategic allies.

Explanation:

Outsourcing refers to a practice that companies engage in to take their operations abroad to lower production costs and avoid being subject to stiff regulations that might harm their profits. <em>Under this approach, firms value chain activities handled in their original country are taken to countries where the manufacturing and labor costs are much lower with and relatively similar qualified workforce and suppliers.</em>  

Outsourcing might harm the employment rate in the domestic country of the company handling operations abroad but could benefit the outsourced nation by introducing job opportunities where there may not even be basic labor conditions.

8 0
3 years ago
Norton Manufacturing expects to produce 2,900 units in January and 3,600 units in February. Norton budgets $20 per unit for dire
storchak [24]

Answer:

Purchases= $26,550

Explanation:

Giving the following information:

Production:

January= 2,900 units

February= 3,600 units

Norton budgets $20 per unit for direct materials.

Beginning inventory raw materials= $38,650.

Desired ending inventory direct materials= 10% of the next month's direct materials needed for production.

To calculate the purchases of direct material, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 2,900*20 + (3,600*0.1)*20 - 38,650

Purchases= $26,550

6 0
3 years ago
Consider the following information: ending inventory, $ 24,000 ; sales, $ 250,000 ; beginning inventory, $ 30,000 ; selling and
Volgvan

96,000 is the cost of goods sold.

Beginning inventory,       $30,000;

Add: Purchases,              $90,000.

Less: Ending inventory  $24,000;

Cost of Goods Sold $96,000

Cost of Goods Sold is the number of direct materials, direct labor, and manufacturing overhead charged to the units sold during the period. Presented as a deduction from net sales to obtain gross margin for the period. The cost of goods sold is the total amount paid by a company for expenses directly related to the sale of its products. Depending on the business, this may include direct labor associated with manufacturing or selling products, raw materials, packaging, and merchandise purchased for resale purposes.

Learn more about the Cost of Goods Sold at

brainly.com/question/24561653

#SPJ4

3 0
2 years ago
The purpose of business activity is to make profit for business?<br><br> True\False
vladimir2022 [97]
The answer is true .
8 0
3 years ago
Serenity accepted a position with Creative Concepts in Houston, Texas. Before her first day, she felt uneasy as she was new to t
ruslelena [56]

Answer:

A. Social needs

Explanation:

Social need is an individual need to have a relationship with others. It involves socialization with one's environment and society. According to Maslow hierarchy of needs, the social need comes after an individual psychological and safety need as been accomplished. Social needs involves making friends, finding love, having lots of intimacy and various series of connections with other individuals. By been able to make new friends and understand her city, the new job seemed to satisfy Serenity need for social relationships and interactions.

6 0
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