Business, 07.07.2020 20:01 patricialovett4570
Now that your firm has matured, you are considering adding debt to your capital structure for the first time. Your all-equity firm has a market value of $21 million and you are considering issuing $2 million in debt with an interest rate of 5% and using it to repurchase shares. You pay a corporate tax rate of 40%. Assume taxes are the only imperfection and the debt is expected to be permanent. A. What will be the total value of the firm after the change in capital structure? B. What will be the value of the remaining equity after the change in capital structure?
Answers: 3
Business, 22.06.2019 13:30
On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?
Answers: 3
Business, 22.06.2019 22:10
Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.
Answers: 1
Business, 23.06.2019 12:40
Discretionary spending: $450 per month new car insurance: $175 per month gas: $100 per month used car insurance: $125 per month gas: $100 per month according to your research, you need to budgetfor insurance and gasoline if you choose to buy or lease the new car. if you choose to buy the used car, you need to budget for insurance and gas.
Answers: 3
Business, 23.06.2019 20:30
Explain the concept of borrowed equity as it relates to an event sponsor. the concept of borrowed equity is when a sponsor does something such as make the team's uniforms or pay for the event venue and in return they are able to advertise their brand during the event or on flyers and things of that nature.
Answers: 1
Now that your firm has matured, you are considering adding debt to your capital structure for the fi...
Mathematics, 08.10.2021 14:00
Physics, 08.10.2021 14:00
Mathematics, 08.10.2021 14:00
Mathematics, 08.10.2021 14:00
English, 08.10.2021 14:00
Mathematics, 08.10.2021 14:00
Mathematics, 08.10.2021 14:00
Mathematics, 08.10.2021 14:00
Physics, 08.10.2021 14:00
Social Studies, 08.10.2021 14:00
English, 08.10.2021 14:00
Computers and Technology, 08.10.2021 14:00
Mathematics, 08.10.2021 14:00