answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anyanavicka [17]
2 years ago
5

Bassett Fruit Farm expects its EBIT to be $373,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.2 p

ercent and the tax rate is 35 percent. The company is in the process of issuing $2.8 million worth of bonds at par that carry an annual coupon of 6.6 percent. What is the unlevered value of the firm
Business
1 answer:
julia-pushkina [17]2 years ago
6 0

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

You might be interested in
Samantha’s database contains a table of student scores and another table with student schedules. How can Samantha use this infor
Ugo [173]
<span>The correct answer is She can use a complex query linking student scores by name and available study period, then sort the data and group it. By doing this, she would have used both tables to make a decision on how to group the students for a review class.</span>
8 0
2 years ago
Read 2 more answers
Which of the following generational groups is most likely to represent the present owners of cottages surrounding Witmer Lake?A)
yawa3891 [41]
I think it’s d but try to search it D
8 0
2 years ago
Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, wha
Korvikt [17]

Answer:

1,030

Explanation:

Calculation for what is the exponential smoothing forecast value

Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)

Exponential smoothing forecast value = 1,000 + 0.3 x (100)

Exponential smoothing forecast value = 1,000 + 30

Exponential smoothing forecast value= 1,030

Therefore the exponential smoothing forecast value will be 1,030

5 0
2 years ago
Hebert Simon cited in Certo &amp; Certo (2014) questioned the ability of managers to make rational decisions. In his opinion, ma
kakasveta [241]

Situations and scenarios affects the ability of managers to make rational decisions.

Let understand that an approach of making rational decisions is based on obtained data which effectively allows decision-making, thereby reducing chances of errors, assumptions and all causes for poor judgments

  • Thus, the main key for decision-making strategy is information and data management.

  • The problem cited by Hebert Simon is because some of decision made by managers are based on assumptions.

In conclusion, quick and rational decisions should be embraced by manager although its requires keeping a track of information and data of different scenarios.

Learn more about this here

<em>brainly.com/question/16867992</em>

8 0
2 years ago
A regional transportation authority is interested in estimating the mean number of minutes working adults in the region spend co
scoray [572]

Answer:  To remove bias when estimating the proportion of working adults living in urban, suburban, and rural areas.

Explanation: In simple words, stratification refers to the process in which different sections of the society are grouped on the basis of one or more general factors.

In the given case, the company wants to estimate the minutes of working adults in the region and the region is grouped into urban, suburban and rural.

Thus, the random selection from different regions is done so that no bias takes place regarding the number of adult working in these three different areas.

8 0
2 years ago
Other questions:
  • The three players in the money supply process include
    8·1 answer
  • Which one of these will most likely require a specialized inspection?
    8·2 answers
  • Assume Countries A, B, and C produce goods that are substitutes of each other and that these countries engage in trade with each
    10·1 answer
  • It’s important in business today for all firms to work to cut out the middleman. Intermediaries represent costs that can be save
    8·1 answer
  • John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each co
    13·1 answer
  • Exercise 12-15 a-b Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Thei
    7·1 answer
  • 2019,Do you think leadership style is fixed and unchangeable, or can leaders be flexible and adaptable with respect to style? Wh
    9·1 answer
  • One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per
    6·1 answer
  • A ________ is a partnership in which two or more companies (often from different countries) join together and share the risk and
    7·1 answer
  • Sunland Company had $186,200 of net income in 2019 when the selling price per unit was $150, the variable costs per unit were $9
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!