Questions Uploads
Question
least 1 examples from a company in your community for the system?
Question
Book-Value Balance Sheet
Net working capital $ 80 Debt $55
Long-term assets 20 Equity 45
$100 $100
Market-Value Balance Sheet
Net working capital $ 80 Debt $ 55
Long-term assets 145 Equity 170
$ 225 $ 225
Assume that MM’s theory holds except for taxes. There is no growth, and the $55 of debt is expected to be permanent. Assume a 37% corporate tax rate.
a. How much of the firm’s market value is accounted for by the debt-generated tax shield?
PV tax shield ___________
b. What is United Frypan’s after-tax WACC if rDebt = 6.0% and rEquity = 17.0%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
WACC _________%
c. Now suppose that Congress passes a law that eliminates the deductibility of interest for tax purposes. What will be the new value of the firm, other things equal? Assume a borrowing rate of 6.0%.(Do not round intermediate calculations. Round your answer to 2 decimal places.)
New Value of the Firm ___________
2) River Cruises is all-equity-financed.
Current Data Number of shares 100,000
Price per share $ 10
Market value of shares $ 1,000,000
State of the Economy
Slump Normal Boom
Profits before interest $ 71,500 118,000 179,500
Suppose it now issues $250,000 of debt at an interest rate of 10% and uses the proceeds to repurchase 25,000 shares. Assume that the firm pays no taxes and that debt finance has no impact on firm value. Refer to the above table to compute the missing data. (Do not round intermediate calculations. Round “Earnings per share” to 3 decimal places. Enter “Return on shares” as a percent rounded to 2 decimal places.)
Outcomes
Number of Shares __________
Price per Share __________
Market Value of Shares __________
Market Value of Debt __________
State of the Economy
Slump Normal Boom
Profits Before Interest 71,500 118,000 179,500
Interest __________ __________ __________
Equity Earnings __________ __________ __________
Earnings Per Share __________ __________ __________
Return on Shares __________% __________% __________%
Question
pricess that produces the parts has a mean of $25.4 once and a standard deviation of 0.22 ounce. The distribution of output is normal.
a.What percent pf Parts will not meet the weigt specs? (Round the “z”value and final answer to 2 decimal places. Omit the % sign in your response
B.Within what values will 99.74 percent of sample means of this process falls if sample of n=12 are taken and the process is in control (random?)(round your answers to 2 decimal places
Question
for a DVD player state that the part should weigh between 24.9 and 25.9 ounces. The process that produces the parts has a mean of 25.4 ounces and a standard deviation of .22 ounce. The distribution of output is normal. Use Table-A.
a.What percentage of parts will not meet the weight specs? (Round your “z” value and final answer to 2 decimal places. Omit the “%” sign in your response.)
Percentage of parts 2.32% (This one i got right)
b.Within what values will 99.74 percent of sample means of this process fall, if samples of n = 12 are taken and the process is in control (random)? (Round your answers to 2 decimal places.)
Lower value ? Upper value ?
Since 2010, we have offered professional writing services to clients all over the world.
Over the years, our writers have gained solid experience in all academic disciplines, giving them a competitive edge to provide only first-rate academic papers.
Hi there! Chat/Order through WhatsApp.