A company just issued $195000 of perpetual 7% debt and used the proceeds to repurchase stock. The company expects to generate 113000 of EBIT in perpetuity. The company distributes all its earnings as dividends at the end of each year. The firm’s unlevered cost of capital is 15% and the tax rate is 30%. Use FTE to calculate the value of the company’s equity.

Answers

Answer 1

The value of the company's equity using the FTE approach is approximately $726,033.

To calculate the value of the company's equity using the Flow to Equity (FTE) approach, we need to determine the present value of the expected cash flows to equity holders.

First, let's calculate the interest expense on the perpetual debt. The interest expense is given by the perpetual debt amount multiplied by the interest rate, which is $195,000 * 7% = $13,650.

Next, we need to calculate the tax shield from the interest expense. The tax shield is the interest expense multiplied by the tax rate, which is $13,650 * 30% = $4,095.

The unlevered net income is the EBIT minus the tax shield, which is $113,000 - $4,095 = $108,905.

Now, we can calculate the value of the equity using the FTE approach. The value of equity is the unlevered net income divided by the unlevered cost of capital, which is $108,905 / 15% = $726,033.

Therefore, the value of the company's equity using the FTE approach is approximately $726,033.

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Related Questions

during the 1980's, the price of one share of Johnson and Johnson stock rose from $17 1/4 to $56 1/8. how much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?

Answers

Given:

Price of one share in 1980 = $\(17\dfrac14\)

Price of one share in 1989 = $\(56\dfrac18\).

To find:

How much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?

Explanation:

Using the given information,

Change in the value of each share = \(56\dfrac18-17\dfrac14\)

                                                          = \(\dfrac{448+1}{8}-\dfrac\dfrac{68+1}{4}\)

                                                          = \(\dfrac{449}{8}-\dfrac\dfrac{69}{4}\)

                                                          = \(\dfrac{449-138}{8}\)

                                                          = \(\dfrac{311}{8}\)

Value of one share increased by $\(\dfrac{311}{8}\).

Value of 100 shares increased by = \(100\times \dfrac{311}{8}\)

                                                        = \(\dfrac{31100}{8}\)

                                                        = \(\dfrac{7775}{2}\)

                                                        = \(3887.5\)

Therefore, you would have made $3887.5 if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989.

Duties performed by warehouse case study class 11

Answers

The duties performed by a warehouse include receiving, storing, and distributing goods and materials efficiently and safely.

What are the primary responsibilities of a warehouse?

A warehouse plays a crucial role in the supply chain management of businesses. Its main responsibilities revolve around receiving, storing, and distributing goods and materials.

Upon receiving shipments, warehouse staff inspect the contents for quality and accuracy verifying that the delivered items match the corresponding documentation. They then organize and store the goods in designated locations within the warehouse ensuring efficient use of space

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Hope you like points because here's 100!

Answers

Answer:

tanks

Explanation:

Like my abs?

Hope you like points because here's 100!

Which of the following is NOT a public good provided by the government?

Answers

Electricity is not given away for free. People are charged for the goods or units of power they use. Ths it is not provided by the government as a public good.

What are public goods?

A good or service that can be consumed by one person without excluding others (national defense, flood control, street lights, open-sources software).

A good that the government offers that is both non-excludable and non-rivalrous is known as a public good.

Public goods include things like security, law enforcement, streetlights, and lighthouses. When there is a market failure, governments frequently try to supply public goods.

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steps on how to create your own app​

Answers

Explanation:

● Steps on how to create your own app

First you have to know coding and programing...

g The liquidity component of the CAMELS rating refers to a. whether a bank frequently needs to borrow from outside sources, such as the federal funds market. b. a bank's sensitivity to financial market conditions. c. the type of loans that a bank provides, the bank's process for deciding whether to provide loans, and the credit rating of debt securities that it purchases. d. how readily a bank's management would detect its financial problems. e. how a bank's earnings would change if economic conditions change.

Answers

The liquidity component of the CAMELS rating refers to whether a bank frequently needs to borrow from outside sources, such as the federal funds market.

The CAMELS rating system is a supervisory rating system that bank examiners use to assess the overall condition of banks. The following criteria are included in the CAMELS system:Capital AdequacyAsset QualityManagementEarningsLiquiditySensitivity to market risks.

Liquidity refers to the ability of an entity, in this case, a bank, to meet its short-term obligations when they come due, without incurring significant losses. This refers to a bank's ability to pay its bills, including meeting withdrawal requests from depositors, and can also refer to a bank's ability to borrow if necessary. When a bank has enough liquidity, it can satisfy its customers and maintain the confidence of its depositors, which is essential for a bank's ongoing success.

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10 C What is the effect of education on employment?​

Answers

The effect of education on Employment is that it increases the employment rate and reduces unemployment

Effect of Education on Employment

With proper education, individuals can get the skills needed to to employed as skilled labor and earn a decent amount of money as a salary.

Without education, most people become unemployed and at best even get a job that is not enough to take care of them.

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Five years ago Tosev Inc. issued 30-year, $1,000 par value, semi-annual coupon bonds with a coupon rate of 9.10 percent. The bonds originally sold at a price of $1,010.32 per bond. Currently, those bonds have a market price of $1,118.15 per bond. The Chief Financial Officer of Tosev is currently considering issuing new bonds. These bonds will have a par value of $1,000, semi-annual coupon payments, a term of 25 years and a coupon rate of 8 percent. Due to differences in the legal provisions of the bonds, the Chief Financial Officer estimates that the yield to maturity on the new bonds will be one percent higher than the current yield to maturity on the old bonds. Based on the Chief Financial Officer's estimate, what would be the price per bond of the new bonds today?
A. $ 817.44
B. $ 896.67
C. $ 901.19
D. $1,000.00
E. $1,118.15
Which of the following statements is most correct?
A. If a bond's yield to maturity exceeds its annual coupon rate, then the bond will be trading at a premium.
B. If interest rates increase, the relative price change of a 10-year coupon bond will be greater than the relative price change of a 10-year zero coupon bond.
C. If a coupon bond is selling at par, its current yield equals its yield to maturity. (Hint: a bond's current yield equals annual coupon payment divided by current price).
D. Both a and c are correct.
E. None of the answers above is correct.

Answers

---------------------Explanation:

what is the note/document from the guardians/parents that the child can work

Answers

Not all students need approval from a parent or guardian to apply for a work permit and no signature is required if the minor provides

grantor c conveys a large house and land to his daughter and son-in-law to be theirs as long as they are married. one year later they are divorced. what happens to the property?

Answers

The property gets reverted back to grantor C one year later they are divorced.

What is divorce?

Divorce is the legal procedure used to dissolve a marriage or other civil partnership. The legal obligations and responsibilities of marriage are typically cancelled or rearranged as part of a divorce, which dissolves the bonds of matrimony between a married couple under the laws of the specific nation or state. A recent national poll found that the primary cause of divorce among couples is a lack of commitment. The reasons provided and their percentages are shown below: Lack of dedication 73% Argue excessively 56% Following divorce, a couple frequently has negative impacts like diminished happiness, a change in their financial situation, and emotional issues. Children may experience issues with their academic performance, behaviour, or mental health.

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accurate awnings is experiencing production delays resulting in a backlog of customer orders, so the firm assembles a team to look into the issue. the team is given full authority to implement a new process for streamlining production without having to get management approval. in this scenario, the team is likely to be

Answers

In this scenario, the team is likely to be self-directed.

Accurate Awnings is currently experiencing production delays, resulting in a backlog of customer orders. In order to address this issue, the firm has assembled a team to investigate the problem and develop a solution.

This team is given full authority to implement a new process for streamlining production without having to seek out management approval.

This team is expected to operate in a self-directed manner in order to efficiently and effectively solve the issue.

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help me ASAP I really need help :(​

help me ASAP I really need help :(

Answers

Answer:

the answer is Demand.

What do you call a website or e-mail address that is created to look like it comes
from a legitimate source? Choose the answer.
pharming
spoofing
spyware
none of the above

Answers

Answer:

this would be called spoofing.

Spoofing is called as  a website or e-mail address that is created to look like it comes from a legitimate source.

What is legitimate source?

Legitimate source is defined as according to the law, something that is legal is acceptable.

It can also be defined as the electoral register is a genuine source of information that is currently available to the public.

A reputable source is defined as the one that has been written by an expert in their field and is free of errors and bias.

A trustworthy source is defined as the one that offers a detailed, well-reasoned idea, argument, or discussion based on solid evidence.

Thus, spoofing is called as  a website or e-mail address that is created to look like it comes from a legitimate source.

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Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:

Answers

The investment group is called Angel Investors.

What is Angel Investors?

An angel investor is a person who contributes money to the startup of a firm or businesses, typically in exchange for ownership equity or convertible debt. Angel investors typically fund start-ups during their first stages and when the majority of investors are unwilling to support them.

A wealthy individual with a high net worth who supports small businesses or entrepreneurs financially is known as an angel investor (also called as a private investor, seed investor, or angel funder).

Angel investors invest normally between $5,000 and $150,000 in potential firms at the very early stages in order to profit. In return, they get an ownership stake in the business and anticipate profits if it is successful.

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Reece gave all 2018 job applicants a math test before hiring. In 2019, Reece looked at the performance appraisal scores of those applicants and found that the applicants who scored well on the math test also received high scores on the analytical aspects of their jobs as measured by their performance appraisals. Reece’s math test appears to have ______. A. Content validity B. Criterion-related validity C. Construct validity D. Reliability E. Analytics

Answers

The applicants who scored well on the math test also received high scores on the analytical aspects of their jobs as measured by their performance appraisals. Reece’s math test appears to have Criterion-related validity.

This is because all applicants are tested before being hired. From the evaluation results, Reece was able to see the relationship between test scores and performance evaluations.

The fact that applicants who performed well on math tests also performed well on the analytical aspects of their work suggests that math tests are a good indicator of job performance.

Criterion-related validity is a type of validity that assesses how well a measure relates to a criterion of interest. The two types of criterion-related validity are predictive validity and competitive validity. 

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Which is likely to advance his/her career?

A. Ogden follows his boss’s instructions completely

B.Sue dresses well and is humble

C. Eddy attends as many technical trainings and seminars as possible

D. Mel is very punctual and hardly takes any leave

Answers

Answer:

C

Explanation:

Eddy attends as many technical training and seminar as possible

Answer:

The answer is C.) Eddy attends as many technical training's and seminars as possible.

Explanation:

I took the test and got it right.

Olivia works for an investment firm with a culture that focuses on productivity and profits over employee development and satisfaction.A.hierarchyB. clanC. marketD. adhocracy

Answers

The culture at Olivia's investment firm, which prioritizes productivity and profits over employee development and satisfaction, is most likely a "market" culture.option (c)

In a market culture, the focus is on achieving measurable results, such as profits and market share, and on outperforming competitors. The culture tends to be highly competitive and fast-paced, with a strong emphasis on individual performance and accountability.

Employee development and satisfaction are often seen as secondary to achieving the organization's objectives. Market cultures can be highly effective in achieving short-term goals, but they may also lead to burnout and high turnover rates if employees feel undervalued and unsupported.

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Neumann Company places 100 units on consignment with Hartman Consignments Company. At the end of the accounting period, 45 of those units remain unsold. How many units (if any) should be included in Neumann's ending inventory

Answers

In this scenario, Neumann Company placed 100 units on consignment with Hartman Consignments Company.

However, at the end of the accounting period, only 55 units were sold, leaving 45 units unsold. Since the unsold units are still the property of Neumann Company, they should be included in Neumann's ending inventory. This is because ending inventory includes all the goods that a company owns and intends to sell. Therefore, Neumann Company should include the 45 unsold units in its ending inventory. It is important to note that even though the units were placed on consignment with Hartman Consignments Company, they are still owned by Neumann Company until they are sold.

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the term used to describe the amount the company expects to receive for an asset at the end of its service life is

Answers

Answer: residual value (or salvage value)

Explanation:

PLEASE HELP ME

The law of demand states that:
A. demand for a product rises when its supply rises.
B. demand for a product falls when its price falls.
C. demand for a product rises when its price falls.
D. demand for a product rises when its supply falls.

Answers

Answer:

C

I hope it helps, sry if it doesn't!

I don't rly know how to explain it tho

Explanation:

Can someone help me solve this like atleast give 50$ 75$ I’ll give you 100 points or brainlist I’ll work for the 100 points don’t answer if wrong

Answers

I do my lil dance dance

They do it nasty

She tell me

What is collateral?
A. a finance charge
B. a specific type of home loan
C. an asset or group of assets that are linked to a loan
D. a down payment

Answers

Answer:

C. An asset or group of assets that are linked to a loan

Explanation:

Collateral is something the bank can take/repossess to sell and get back the money they loaned you if you don't repay your loan. Cars and houses are great examples of this.

Answer is C an asset or group of assets that are linked to a loan

How would a consumer calculate the value of an Apple iPhone?

Answers

Answer:

Explanation:

Apple's value has been created through voluntary trade with customers; it has convinced its customers that its products are worth more than those of its competitors, and clearly their customers agree.” An immense amount of groundwork was done by people who came before Apple and Steve Jobs, all of whom Crotty credits.

The consumer are the large demand of to calculate the value of an Apple iPhone are the voluntary trade with the customer. The company are the more influenced the consumer.

What is consumer?

The term “consumer” means purchasing a product or service for the purpose of personal use. The consumer are consuming the product and services. The consumer are buying the product and services with exchange of money. The consumer are to switch to the substitutes goods.

The consumer was to use the mobiles was more like the Apple iPhone. The company was the direct sale to the consumer, The consumer demand because are the voluntary trade with customers. The company convinced the consumer the customers was the agreed.

As a result, the consumer calculate the value of an Apple iPhone are the convinced the consumer are the purchased the iPhone for the new features.

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After a presentation is created, there is nothing left to do.
True
False

Answers

Answer:

false

Explanation:

Swagged out, for Milly we bringing them gats out
I still got some racks stuffed in the trap house
Off the '42, I'm blowing her back out (blowing her back out)
I'm back on my bullsh.it, swing back with a full clip

Answers

Answer:

ok

Explanation:

Suppose that you are part of a team of epidemiologists that is hired by various agencies to design and conduct analytic studies. Your team recently implemented three separate studies, a cohort study, a case-control study, and a clinical trial, as described below. Work with your team to analyze and interpret the data that was collected in each study. It may help to consider the following questions: 1) How will you set up the 2×2 contingency table for the data? 2) What measure will you calculate to describe the strength of the association between the exposure and the disease (i.e., relative risk (RR) or odds ratio (OR)) ? 3) Can you calculate a measure to describe the potential impact of the exposure on the disease in the study population (i.e., attributable risk (AR)) and/or in the total population (i.e., population attributable risk (PAR))? 4) How are the resulting measures interpreted? 5) What do the resulting measures say about the potential association between the proposed exposure and disease? 6) What are the strengths and weaknesses of the study design and how will those attributes affect the way that you interpret and use the results? 7) What conclusions will you provide and will you make any public health recommendations based on the study results

Answers

The measures to analyze and interpret the data from a cohort study, case-control study, and clinical trial are as follows:

1) Set up the 2x2 contingency table with exposure and disease statuses

.
2) Calculate relative risk (RR) for cohort studies, odds ratio (OR) for case-control studies, and compare treatment groups in clinical trials.


3) Determine attributable risk (AR) and/or population attributable risk (PAR) if applicable.


4) Interpret the measures in terms of the strength of association and potential impact on the study population.


5) Assess the potential association between exposure and disease based on the calculated measures.


6) Evaluate the strengths and weaknesses of each study design, affecting interpretation and use of results.


7) Provide conclusions and public health recommendations based on study results.

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Which of the following is a primary activity in the generic value chain?
a. Human resource management
b. Inbound logistics
c. Procurement
d. Firm infrastructure
e. Technology development

Answers

The primary activity in the generic value chain is inbound logistics. This includes receiving, storing, and distributing inputs to the production process.(option b)

Inbound logistics is critical to the success of a business as it affects the efficiency and effectiveness of the entire production process. It involves activities such as transportation, warehousing, and inventory control. By managing these activities effectively, businesses can minimize costs, improve production processes, and ultimately increase profitability.

While human resource management, procurement, firm infrastructure, and technology development are all important components of the value chain, they are considered support activities rather than primary activities. Support activities play a crucial role in enabling primary activities to function effectively, but they do not directly add value to the final product or service. Therefore, inbound logistics is the primary activity in the generic value chain.

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If the exchange rate between the u.s. dollar and the Canadian dollar is 1:1.3, which of the following is true

Answers

Answer:

It will cost less to buy a $5 item in Canada than it will in the United States

Explanation:

if the exchange rate between the US Dollar and the canadian dollar is 1:1.3, then that menas that it would be easier to buy a commodity of $5 in canada as against buying in the US. This is because the price of the commodities will be affected by the exchange rate thus price making room for a 0.13

Cheers

Bitcoin. Sweat. Tide. Meet the Future of Branded Currency
What is Bitcoin and where did it come from?


What kinds of businesses are accepting Bitcoin?


What is the definition of money, according to Kemp?


What are some other forms of currency in existence now?


Can you think of other examples of currency?

Answers

Bitcoin is known to originated from no where  and it is seen as a kind of  a digital currency invented by a man or group of men called Satoshi Nakamoto in 2008.

What kinds of businesses are accepting Bitcoin?

They are:

Microsoft. Overstock.Starbucks, etc.

What is the definition of money, according to Kemp?

Kemp defines money as a given expression of value that is said to be often agreed upon by people.

What are some other forms of currency in existence now?Litecoins.BerkShares. Equal Dollars.Ithaca Hours.

Other examples of currency are bonds, commodity money, etc.

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The break-even point in sales dollars may be computed as:
A. total contribution margin divided by the unit contribution margin per unit
B. fixed costs divided by the difference in unit price and unit variable costs
C. the difference between total contribution margin and operating profit divided by the contribution margin ratio
D. fixed costs divided by contribution margin per unit

Answers

The break-even point in sales dollars may be computed as: D. Fixed costs divided by contribution margin per unit.          

What is  Break-even point?

The break-even point is where the companies are successful in recovering their Cost. After this point, the additional unit of sales of the product or service gives the company a profit.

Total Revenue = Total Cost

The formula to Calculate the Break-even point is:

Break even point = Fixed cost/ contribution margin per unit

Therefore, correct option is D. Fixed costs divided by contribution margin per unit.

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Other Questions
Reading:Jack and Diane had worked hard to make it through college at the University of Houston. Both had taken out student loans and worked full-time to make it through. The hard work paid off when Jack got his first electrical engineering job at a large computer company in Houston making $35,000 a year. Diane graduated with a degree in child development and started a little daycare center in their new suburban home outside Houston.Things were going so well that they decided to make an addition to the family, and luckily enough, nine months later, a bouncing baby boy arrived. Danny seemed to be a perfectly healthy baby boy. When Danny started to walk, he fell a lot, as most children do. On one occasion Danny hit his head on the coffee table and cut himself above his right eye. As concerned parents, Jack and Diane took Danny to their local pediatrician to see if he needed stitches.As they were driving to the doctor, Diane commented that the bleeding would not stop. When the pediatrician began sewing up the eye, he knew that there was more to the cut than just a simple laceration. The doctor asked the concerned parents if Danny was a hemophiliac. To this point, they had never had any reason to suspect that their little boy had any problems with blood clotting. The doctor took some blood and sent it to the lab to be analyzed. Their fears were confirmed--Danny was a hemophiliac.Hemophilia refers to a group of bleeding disorders in which it takes a long time for the blood to clot. In severe cases, serious bleeding may occur without any cause and internal bleeding may occur anywhere. Hemophilia is an X-linked recessive characteristic that usually occurs in males. If a mother is a carrier of the recessive gene there is a 25% chance she will have a child who is a hemophiliac. If females are born with hemophilia they are certain to have problems during puberty. To treat this problem, victims are given transfusions of Factor VIII, which is one of the platelet chemicals that healthy people produce to clot blood. The cost of Factor VIII transfusions can run up to $80,000 a year per patient. Luckily for Jack and Diane, they had insurance through his company. The insurance paid 90% of the bills so that left $8,000 to be paid by Jack and Diane. This put a small stress on their marriage. However, they decided to have another child, even though they knew there was a 25% chance their next child could be a hemophiliac also.----------------------------------------------Questions:Genetic counselors are health professionals with specialized graduate degrees and experience in the areas of medical genetics and counseling. As part of their job, they work as members of a healthcare team to provide information and support to families who may be at risk for a variety of genetic conditions.Pretend you are a genetic counselor and you are meeting with Jack and Diane. What advice would you offer them about having another child? What support would you offer them knowing they already have one child with hemophilia? Use the space below to write a short paragraph.-----------------------Which of the following accurately describes the problem presented in the reading?A) Jack and Diane are a married couple who are deciding where to obtain advanced educational degrees.B)Jack and Diane, a hard-working married couple, have a son who hit his head and it wont stop bleeding.C)Jack and Diane, a hard-working married couple, have a son who hit his head and now must receive medical treatment at a local hospital How should the courts balance the rights of the criminal against the rightsof society and the victim when trying to ensure fair treatment for all? does she usually ______ a big sandwich?eateats Who established the Roman Empire? Gaius Octavius Julius Caesar Nero Seleucus I Nicator If the sum of three consecutive integers is less than 75, find the cube of the largest possible integer. Find the stope of the line that is, d.) my rour answer and writer comper fraction, or integer. What is oxidation?releases energy from meat products for us to usereleases energy from the food for us to usereleases energy from the sunreleases energy from photosynthesis If a = 12 feet, b = 6 feet, c = 2 feet, d = 15 feet, and e = 3 feet, what is the area of the object? there are 3 e's and 2 c's Glucose is often present at very low concentrations in environments populated by microorganisms. To import the maximum amount of available glucose, microbial cells use: Group of answer choices The moving of the Viet Cong prisoners of war camps is an example of needing ______ intelligence. a. human. b. swift. c. tactical. d. analyzed. James throws a baseball straight upward. We can ignore air resistance. What is true about the acceleration and velocity of the ball on its way down? David was having a heated argument with Sue that the business should consider more than shareholders when making it business decisions. David was reflectingGroup of answer choicesa. Profit maximizationb. Stakeholder theoryc. The learning curved. Microeconomics equilibrium while all zebras have stripes no two zebras share the same stripe patteren how would auden most likely rewrite the following line(s) of the poem if brueghel's painting had depicted icarus falling on to the land instead of in the sea? Question 5How does the narrator feel about Puritan culture in the story I, Tituba, Black Witch of Salem? Compare city life with rural life in North Africa: I need help........... The graph of f(x)=x^2 has been translated 4 units down. whats the equation The Bar Chart shows the weights of 10 dogs entered in a local dog show.Which statement is true about this data set? A. The range is 94 lb. B. The mean is 35.5 lb. C. The median is 45.1 lb. D. The mode is 14 lb. Question 16 ptsThe demand and supply for headphones are given astQ+60-4PQ-4P-20What is the new consumer and producer surplus if the govemment imposes a $5 per unit tax? What is the deadweight loss? What is the tax revenue?