Answer:
Final Value= $565,593.64
Explanation:
Giving the following information:
It is estimated that she would need $1 million to cover all the expenses for both her children. She is willing to save $20,000 every six months for the next 10 years. The estimated rate of return is 7 percent annually that she would be earning on a semi-annual compounding basis.
Effective rate=0.07/2= 0.035
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {20000*[(1.035^20)-1]}/0.035= $565,593.64
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
Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.
<h3>What is multinational enterprise?</h3>
Multinational enterprise are International organization or cooperation with two or more countries in the chain of operation.
They also involve in production of goods and services.
Therefore, Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.
Learn more on cooperation here
brainly.com/question/1669538
Answer:
all of the above
Explanation:
because it needs to be affordable safe and comfortable
