Business, 28.02.2020 01:42 snowprincess99447

Colt Systems will have EBIT this coming year of $ 17million. It will also spend $7 million on total capital expenditures and increases in net working capital, and have $3 million in depreciation expenses. Colt is currently an all-equity firm with a corporate tax rate of 35% and a cost of capital of 10%. a. If Colt's free cash flows are expected to grow by 8.7% per year, what is the market value of its equity today?b. If the interest rate on its debt is 8%, how much can Colt borrow now and still have non-negative net income this coming year? c. Is there a tax incentive today for Colt to choose a debt-to-value ratio that exceeds 49%? Explain.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 15:10

Gideon company uses the allowance method of accounting for uncollectible accounts. on may 3, the gideon company wrote off the $2,200 uncollectible account of its customer, a. hopkins. on july 10, gideon received a check for the full amount of $2,200 from hopkins. the entry or entries gideon makes to record the write off of the account on may 3 is:

Answers: 3

Answer

Business, 21.06.2019 15:40

Nikolas works in a shoe store as a salesperson. a teenage boy comes in looking for comfortable sports shoes because he is going on a hike. he tells nikolas he wants shoes that have velcro straps. nikolas shows him a wide variety of velcro-strapped shoes, but the customer rejects them because they don't feel comfortable. he asks for sports shoes with laces instead. nikolas once again shows him a wide variety. the boy is once again not satisfied and asks to see the velcro-strapped shoes again. nikolas is irritated but doesn't show his annoyance. what customer service skill is nikolas showing? nikolas is a. meekness b. patience c. persistence

Answers: 1

Answer

Business, 21.06.2019 19:30

Consumer surplus is: the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers. the difference between the price of a product and consumers' valuation of the last unit of the product purchased.

Answers: 2

Answer

Business, 21.06.2019 20:30

Which organization was established to train the hard-core unemployed? - better business bureau- equal employment opportunity commission- environmental protection agency- affirmative action committee- national alliance of business

Answers: 1

Answer

You know the right answer?

Colt Systems will have EBIT this coming year of $ 17million. It will also spend $7 million on total...

Questions