Answer:
The correct answer is $1,836,742.42.
Explanation:
According to the scenario, the given data are as follows:
EBIT = $373,000
Cost of equity = 13.2%
Tax rate = 35%
So, we can calculate the unlevered value of the firm by using following formula:
Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY
By putting the value, we get
Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%
= $373,000 × 0.65 ÷ 0.132
= $242,450 ÷ 0.132
= $1,836,742.42
Answer:
the nominal annual interest rate on the payment plan is 15%
Explanation:
According to the question, a one-time payment for the speakers will cost $1,000
An installmental payment will have a $150 down payment and then another $100 fro ten subsequent months.
Calculating the total payment at tthe end of the payment plan will give
$150 + ($100 x 10months)
we have, $150 + $1,000 = $1,150.
This shows that at the end of the payment plan, the set of speakers would have cost $1,150 instead of $1,00 one-time payment.
Step 2:
To calculate the interest rate, we subtract the one-time price from the payment plan price and express it as a percentage of the one time price to get tthe interest rate.
$1,150-$1,000 = $150
then we have,
($150 ÷ $1,000) × 100%
= 0.15 × 100%
- 15%
The nominal annual interest rate is 15%.
Cheers.
Compared to commercial banks, finance companies usually signal solvency and safety concerns by holding higher capital-asset ratio
Answer:there are 4
Explanation:if you take the 16 businesses and multiply it by a quarter which is .25 and you will get 4
Answer:
The total cost of the phone is $1,270.56
Explanation:
The total cost of the phone is computed as:
Total cost = Cost of phone for 2 years + Cost of warranty coverage for 2 years
where
Firstly, the cost of phone for 2 years is computed as:
Cost of phone =( For first year) Per month Cost × 12 months +( For second year ) Per month Cost × 12 months
= $39.95 × 12 + $39.95 × 12
= $ 479.4 + $479.4
=$958.8
Then, the Cost of warranty coverage for 2 years is computed as:
Cost of warranty = ( For first year) Per month Cost × 12 months +( For second year ) Per month Cost × 12 months
= $12.99 × 12 + $12.99 × 12
= 155.88 + $155.88
= $311.76
Therefore, the total cost would be:
Total cost = $958. 8 + $311.76
= $1,270.56
