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puteri [66]
3 years ago
13

A firm has unlevered beta of 1.1, and now its debt to equity ratio is 0.4. What is the levered beta assuming the tax rate is 40%

?
Using WACC to discount free cash flows, one gets the value of the firm. True or False?

Suppose beta is 1.2, risk free rate is 3%, market risk premium is 5%, before tax cost of debt is 6%, tax rate is 40%, and the firm's debt to equity ratio is 0.5, what is WACC?

a. A firm has EBIT of 100 million, depreciation of 15 million, tax rate of 40%, change in net working capital of 3 million, and capital expenditure of 20 million, what is the free cash flow?
b. Suppose this free cash flow grows at 3% per year forever, and the WACC is 8%, what is the firm value?
c. If this firm has outstanding debt of 150 million, what is the equity value of the firm?
d. Suppose a firm has free cash flow of equity 100 million per year indefinitely, and its cost of equity is 10%, what is the equity value of this firm?
e. If this firm has outstanding debt of 250 million, what is the firm value?
Business
1 answer:
PolarNik [594]3 years ago
3 0

Answer:

i dont know

Explanation:

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Floating rate bonds are most likely to be popular with investors when it is anticipated that:_________.
fiasKO [112]

Answer:

i think d is the correct answer

6 0
3 years ago
A manufacturer of hospital supplies has a uniform annual demand for 320 comma 000 boxes of bandages. It costs ​$10 to store one
mash [69]

Answer:

100 times per year

Explanation:

Data provided in the question:

Annual Demand , D = 320,000 boxes

Cost of storing one box, C = $10

Plant set up cost for production, c = $160

Now,

The optimal ordering quantity = \sqrt\frac{2cD}{C}

or

The optimal ordering quantity = \sqrt\frac{2(160)(32,000)}{10}

or

= 3200

Therefore,

Number of timer in year company produce boxes = \frac{\textup{Demand}}{\textup{Optimal order quantity}}

= \frac{\textup{320,000}}{\textup{3,200}}

= 100 times per year

4 0
3 years ago
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Tatiana [17]
D. foreign real national income falls and wages rates rise. 
3 0
4 years ago
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vesna_86 [32]

Answer:

delight

Explanation:

Consumer satisfaction refers to the level of happiness that a customer derives from the consumption or use of any product or service. The information related to the customer satisfaction is derived from the surveys and ratings. These information helps in the betterment and improvement of the product and services.  

Delighting the customer is a very important part of marketing. This helps in maintaining the customer relation.

4 0
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Does experiencing communication always result in better communication? (Interpersonal communication)
JulsSmile [24]
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