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ale4655 [162]
3 years ago
5

Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expect

ed to grow at a constant 3% rate after Year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 Interest expenses $80 $95 $140 What is the horizon value of the interest tax shield
Business
1 answer:
raketka [301]3 years ago
6 0

Answer: $400.56

Explanation:

Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)

Tax shield in year 3 = Interest expense * tax rate

= 140 * 25%

= $35

Horizon value = 35 * ( 1 + 3%) / (12% - 3%)

= $400.56

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Selling price per unit = £0.63
ikadub [295]

Answer:

368 units

Explanation:

The Break-even point is calculated by dividing fixed cost by the contribution margin per unit.

Fixed cost = £140

Contribution margin per unit = Selling price per unit - variable cost per unit

Selling price = £0.63 : Variable cost :  £0.25

Contribution margin per units =£0.63 - £0.25

=£0.38

Break-even point = £140 / £0.38

=368.42

=368 units

5 0
3 years ago
A(n) ______ business is any firm that engages in cross-border trade or investment.
tamaranim1 [39]

An international  business is any firm that engages in cross-border trade or investment.

What is cross-border?

A cross border trade or investment is a trade or investment involving two or more countries where the parent company based in one country establishes another business in another country.

International businesses which are also known as the multinational companies transcends beyond one country since diversification of investments and trade is key to enhancing overall business performance

Find out more about international business on:brainly.com/question/14690606

#SPJ1

4 0
2 years ago
The correct amount of prepaid insurance shown on a company’s December 31, 2021, balance sheet was $1,400. On May 1, 2022, the co
devlian [24]

Answer:

Expense 2022                1500

Explanation:

december 31 2021         1400

december 31 2022 1000

                                 400

 

Pay additional insurance 1100

 

Expense 2022                1500

4 0
4 years ago
Explain why the income tax graph has different slopes. what is the meaning of each slope? ​
grandymaker [24]

If we are talking slopes, we are talking linear equations, since lines are the only functions with slopes. If the slopes are the same, the lines will be parallel, and that is where we have a case of no solution because parallel lines will never intersect. NEVER EVER. If the slopes are different, eventually the lines will intersect somewhere.

HOPE THIS HELPS :)
3 0
3 years ago
What to do if the product is not a consumer problem?
Kay [80]

could you explain it more

8 0
3 years ago
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