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pashok25 [27]
2 years ago
5

Trucks R' Us has a market capitalization of $142 million, $78 billion in BB rated debt, and $10 billion in cash. If Trucks R' Us

' equity beta is 1.68, then their underlying asset beta is closest to:
Business
1 answer:
Sati [7]2 years ago
6 0

Answer:

Their underlying asset beta is closest to is 1.08

Explanation:

According to the given data we have the following:

Debt is given as $78 billion

Equity is given as $142 billion

equity beta given as 1.68

Therefore, in order to calculate the underlying asset beta we would have to use the formula of the the equity beta for a levered firm as follows:

betaE =beta A [1 + (Debt / Equity)]

1.68 = \beta A [1 + ($78 B/ $142 B)]

1.68 = \beta A [1 + 0.5493]

betaA = 1.68 / 1.5493

betaA = 1.08

Their underlying asset beta is closest to is 1.08

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Answer:

a. VPN

Explanation:

Based on the information provided within the question it can be said that in order to make the company's actions safer and more anonymous they should use a VPN. This term refers to a Virtual Private Network, which allows individuals to share and receive data across a public network as if they were in a private network, from anywhere in the world that they choose. This makes it completely anonymous and safe.

7 0
2 years ago
Mayan Company had net income of $33,480. The weighted-average common shares outstanding were 9,300. The company declared a $4,00
bearhunter [10]

 Answer:

EPS = $3.17

Explanation:

<em>Earnings per share(EPS) is the total earnings attributable to ordinary shareholders divided by the number of units of common stock. </em>

EPS= Earnings attributable to ordinary shareholders/number of ordinary shares

Earnings attributable to ordinary shareholders= Net income after tax - preference dividend  

Earnings attributable to ordinary shareholders = net income - preference divi dend

Earnings = 33,480 - 4000 = 29,480

EPS = 29,480/9,300 =3.169

EPS = $3.17

7 0
2 years ago
Irene invested $27,000 in a twelve-year CD bearing 8.0% interest, but needed to withdraw $6,000 after three years. If the CD’s p
stepladder [879]

$5,040 since Irene earned nearly earned about $4,800 less than what she would be making if she did not make her early withdrawal.

8 0
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Read 2 more answers
A school district is borrowing $40,000,000 over 17 years to fund a building expansion project. The school board can borrow annua
tangare [24]

Answer:

<u> borrow for one year at 1.75% and then must borrow fixed.</u>

<u>Explanation:</u>

This option appears to be more economically advantageous and would save all jobs. Consider why this is the case from the interest paid in each option:

The Interest rate paid at 1.75%:

  • for one year at 1.75% = $700, 000 (1.75%x40,000,000)
  • for annually up to five years at 1.75%= $3,500,000 (1.75%x40,000,000x5 years).

The Interest rate paid at 4%:

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Total:

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Second option = $22,700,000

Therefore, the first option is more economically advantageous.

3 0
2 years ago
When employees at all occupational levels are asked to rank what is important to them, the order that put them in is: sufficient
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