The unlevered value of the firm can be calculated using the constant growth formula for the perpetuity:
VU = EBIT / r
where VU is the unlevered value of the firm, EBIT is the expected earnings before interest and taxes, and r is the cost of capital or the required rate of return for the firm.
In this case, we are given that the EBIT is $413,000 per year forever, and the cost of equity is 14.2 percent. Since the firm has no debt, the cost of equity is also the cost of capital for the firm.
Using these values, we can calculate the unlevered value of the firm as follows:
VU = $413,000 / 0.142 = $2,907,746.48
Next, we need to calculate the value of the firm with debt (VL) using the adjusted present value (APV) approach:
VL = VU + PV(interest tax shield) - PV(financial distress costs)
where PV(interest tax shield) is the present value of the tax savings from deducting interest payments, and PV(financial distress costs) is the present value of the expected costs of financial distress.
To calculate the present value of the interest tax shield, we need to calculate the interest tax shield each year, discount it at the cost of debt, and sum the present values over the life of the debt. The interest tax shield can be calculated as follows:
Interest tax shield = Interest expense x Tax rate
where Interest expense is the annual interest payment, and Tax rate is the corporate tax rate.
In this case, we are given that the firm is issuing $1.8 million worth of bonds at par that carry an annual coupon of 5.6 percent. Therefore, the annual interest expense is:
Interest expense = $1,800,000 x 5.6% = $100,800
The tax rate is given as 39 percent.
Using these values, we can calculate the present value of the interest tax shield as follows:
PV(interest tax shield) = $100,800 x (1 - 0.39) x (1 - 1 / (1 + 0.056)^5) / 0.056 = $352,904.62
where (1 - 1 / (1 + 0.056)^5) is the present value factor for a five-year annuity with a discount rate of 5.6 percent.
Next, we need to estimate the expected costs of financial distress. Since the firm is currently debt-free, it has no existing debt obligations or financial distress costs. Therefore, we can assume that the expected costs of financial distress are zero.
Using these values, we can calculate the value of the firm with debt as follows:
VL = $2,907,746.48 + $352,904.62 - $0 = $3,260,651.10
Therefore, the unlevered value of the firm is $2,907,746.48, and the value of the firm with debt is $3,260,651.10.
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samuel heads a company that manufactures cell phones. he places emphasis on innovation and creation of new products and feagures rather than imitation of competitors products. this instance shows that Samuel uses the _____approach to frame the purpose of his organization.
a. heroism
b. discovery
c. excellence
d. altruism
that Samuel uses the (b) discovery approach to frame the purpose of his organization.
The correct option is B
Samuel's focus on innovation and creation of new products and features indicates that he is taking a discovery approach to frame the purpose of his organization. This approach emphasizes the exploration of new possibilities, the pursuit of knowledge and understanding, and the development of new ideas and concepts. The discovery approach is often used by companies that are seeking to differentiate themselves from their competitors by creating new products or services that are not currently available in the market. It requires a willingness to take risks, experiment, and embrace failure as a learning opportunity.
The discovery approach emphasizes innovation, creativity, and the development of new products and features, rather than simply imitating competitors' products. In this instance, Samuel's focus on innovation and creation of new products aligns with the discovery approach.
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to be counted as employed in the u.s. labor force statistics, a person
Employed people plus unemployed people make up the labor force, and the unemployment rate is calculated as the number of jobless people divided by the total labor force.
Who does the US labor force not include?This measure excludes those who have not looked for employment in the previous four weeks. It's critical to remember that the rate, which totals employed and unemployed people, does not represent the complete population but rather the percentage of job seekers who are jobless.
The labor force participation rate includes who?The percentage of civilian non-institutional residents 16 years of age and older who are employed or actively seeking employment is known as the labor force participation rate.
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The complete question is:
To be counted as employed in the u.s. labor force statistics, a person
A) does not have to be working for pay if they are working for a family business and does not have to be working full time.
B) people who are temporarily absent from their job and people who work without pay in a family member's business
Ishikawa focused on all of the following tools for quality
problem-solving EXCEPT?
Group of answer choices
Benchmarks
Fishbone Diagram
Scatter Diagrams
Pareto Chart
The technique that Kaoru Ishikawa didn't focus on for quality problem-solving was Benchmarks. The correct answer is Option B.
Kaoru Ishikawa was a Japanese engineer and statistician, and a Quality Management innovator who conducted extensive research on Quality Management systems and developed techniques such as Fishbone Diagram. This technique was used to identify and solve quality-related problems. In addition to Fishbone Diagram, Kaoru Ishikawa emphasized the use of Scatter Diagrams, Benchmarks, and Pareto Chart to solve quality problems.
The technique that he didn't focus on for quality problem-solving was Benchmarks.
Let's discuss more about each of these quality problem-solving tools:
Fishbone Diagram: It is a graphical technique used to identify and solve quality-related problems. The fishbone diagram is also called an Ishikawa diagram or a cause-and-effect diagram. It provides a visual representation of all potential causes of a problem. This diagram was developed by Kaoru Ishikawa to solve problems in quality control, production processes, and other industries.
Scatter Diagrams: A scatter diagram is a graphical representation of the relationship between two variables. The horizontal axis represents one variable, while the vertical axis represents the other variable. This type of chart is used to determine whether a relationship exists between the two variables. It is also used to identify any trends or patterns in the data.
Benchmarks: A benchmark is a standard of performance that is used as a reference point to compare and evaluate other performance metrics. Benchmarking is a process that involves comparing the performance of a company or organization against industry standards or best practices.
Pareto Chart:
A Pareto chart is a graphical tool used to identify and analyze the causes of problems. It is a combination of a bar graph and a line graph. The bars represent the frequency or quantity of each cause, while the line represents the cumulative percentage of the total number of causes. The Pareto chart is used to prioritize and address the most significant causes of a problem.
The technique that Kaoru Ishikawa didn't focus on for quality problem-solving was Benchmarks.
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Which of the following describes intellectual property
concepts that are too abstract to be copyrighted or trademarked in any way
things that are created in the mind and not necessarily able to be seen or touched
inventions or discoveries that have significant educational or scientific value
any kind of work or creation that was developed at a college or university
Suppose that a sales tax is levied on milk at rate T, such that if a litre of milk is sold at price P, then the payment actually received by the seller is P/(1+T). Let p = log P and t := log(1 +T), so that log[P/(1+T)] = p — t. The log demand and supply for milk
The log demand and supply for milk can be represented by equations involving the log of the milk price.
To determine the log demand and supply for milk, we need to consider the relationship between price and quantity in the logarithmic form. Let's denote the quantity demanded as Qd and the quantity supplied as Qs.
The log demand equation can be expressed as Qd = f(p), where p represents the log of the milk price. The log demand equation indicates how the quantity demanded changes in response to price variations.
The specific form of the demand equation depends on the factors affecting milk demand, such as income, taste, and the price of substitutes. Without additional information, we cannot provide an exact functional form for the log demand equation.
Similarly, the log supply equation can be expressed as Qs = g(p), where p represents the log of the milk price. The log supply equation represents the relationship between the quantity supplied and the price of milk.
It depends on factors such as production costs, technology, and the availability of inputs. Again, without specific information about these factors, we cannot provide a precise functional form for the log supply equation.
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Suppose again that furniture production is more capital-intensive relative to clothing production, which is more labor-intensive. If the relative price of furniture to clothing rises, this will.
If the relative price of furniture to clothing rise, this will simply raise the income of capital owners when furniture production is more capital intensive relative to clothing production.
Let’s understand what is capital-intensive and what is labour -intensive-
Capital intensive: When the production of a particular good or service require more of capital asset such as land, machinery, equipment rather than physical labour it is said to be using capital intensive technique. For example: production of a laptop requires more capital-intensive technique.
Labour- Intensive: When the production of some good and services require more use of physical labour rather than capital asset, it is said to be using labour-intensive technique. For example: production of a building requires more labour-intensive technique.
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Who are you voting in this years election and why?
i am a democrat so i will NOT be voting for trump. :)
Answer:
I am voting for Donald Trump in this election
Explanation:
Next question You are considering a car loan with a stated APR of 6.85% based on monthly compounding. What is the effective annuse tato of this an The effective annual rate is % (Round to two decimal
The effective annual rate of the car loan with a stated APR of 6.85% based on monthly compounding is 7.07%. The effective annual interest rate is the real return on an interest-paying investment when compounding over time is considered.
The effective annual rate of the car loan can be calculated using the formula: \((1 + APR/n)^{n - 1}\), where APR is the stated annual percentage rate and n is the number of compounding periods per year. In this case, the APR is 6.85% and the loan is compounded monthly, so n = 12.
Substituting these values into the formula, we get: \((1 + 0.0685/12)^{12} - 1 = 0.0707 \;or \;7.07\%\). Therefore, the effective annual rate of this car loan is 7.07%.
The effective annual rate takes into account the effect of compounding on the loan over a year, providing a more accurate representation of the true cost of borrowing. It is important to consider this rate when comparing different loan offers from different lenders to ensure you are getting the best deal.
In summary, the effective annual rate of the car loan with a stated APR of 6.85% based on monthly compounding is 7.07%.
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Complete Question:
You are considering a car loan with a stated APR of 6.85% based on monthly compounding. What is the effective annual rate of this loan? Round to two decimals.
List your personal and professional goals and create an individual career plan. Your plan should have specific milestones and achievements and should span 10 years.
can someone help me I want to go into the Navy or be a Tattoo artist and I can't think of anything for this.
30 POINTS!!
Explanation:
Setting specific, measurable career development goals can help you get to the next level in your career. While developing a career plan can entail a significant amount of work, it will pay off in helping you to understand where you want to go with your career next and what you need to do to get there.
Creating and implementing an employee career development plan allows you to feel motivated at work, even if you haven’t found your dream job just yet, because it helps you to make concrete plans to get there.
Here, we define a career development plan template and outline five steps to easily and efficiently make an individual development plan for yourself.
Assume a contractionary gap of $4 trillion. with mpc equal to 0.75. What would be the recommended fiscal policy action in order to return output to full employment levels?
The recommended fiscal policy action would be to increase government spending and/or decrease taxes as a means to stimulate aggregate demand and close the contractionary gap.
To return output to full employment levels in the case of a contractionary gap of $4 trillion and an MPC of 0.75, the recommended fiscal policy action would be to implement expansionary fiscal policy. This involves increasing government spending and/or decreasing taxes to stimulate aggregate demand and close the contractionary gap.
One approach could be for the government to increase its spending on infrastructure projects, such as building roads, bridges, and schools. This would create jobs and stimulate economic activity, leading to an increase in output. Alternatively, the government could implement tax cuts to increase disposable income for consumers, which would then be spent on goods and services, further boosting aggregate demand.
By taking these fiscal policy actions, the government can encourage spending and investment, which would help to close the contractionary gap and bring the economy back to full employment levels.
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Everyone who enters the sales funnel exits as a customer.
True
False
Answer:
false
Explanation:
if you ever go there, you wouldn't be forced to buy anything
which styling product creates maximum control and support of the hair especially for wet setting?
When it comes to creating maximum control and support for wet setting hair, the best styling product to use is a gel. Gel is a thick and sticky substance that can hold hair in place, making it the perfect choice for wet setting styles that require a lot of control.
Gels come in a variety of formulas, including those that are designed specifically for wet setting. These formulas often have additional ingredients that help to moisturize and protect the hair while providing maximum hold. Some gels also contain heat protectants, which are important if you plan to use heat styling tools such as a blow dryer or curling iron. To use gel for wet setting, apply a small amount to damp hair and distribute it evenly using a comb or your fingers. Style your hair as desired and allow it to air dry or use a diffuser to speed up the drying process. Overall, if you're looking for maximum control and support for your wet setting hair, a gel is the way to go. With its thick and sticky consistency, it can hold even the most unruly hair in place while protecting it from damage and keeping it looking healthy and shiny.
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There is no such thing as "the law" in that law comes from many different sources.
Answer:
At both the federal and state levels, the law of the United States can be traced back to the common law system of English law, which was in force in the American colonies during the time of the Revolutionary War. Since then, U.S. law has diverged greatly from its English roots both in terms of substance and procedure. The main departure occurred when the United States ratified the Constitution in 1789. In effect, the Constitution and federal statutes and laws made in furtherance of the Constitution were established as “the supreme Law of the Land.” From that point on, the law of the land was no longer based on legal practices in England but became distinctly American and home grown. When the individual states ratified their state constitutions, the state legislatures obtained the power to establish state law, or the “Law of the State.” Together, this collection of federal and state laws constitutes something we often refer to as the “body of law.” This body of law governs the behavior of individuals, businesses, and even governments. Just like the human body, the “body of law” is comprised of multiple parts, each performing an individual function while simultaneously working together as a whole. In this section, we will examine two of the most fundamental types of laws, followed by nearly every nation in the world: statutory law and common law.
High school students may include coursework in the education section of a résumé if it is relevant to the job opening. True or False
Answer:
the answer is true
Explanation:
Answer:
True
Explanation:
The management of Asteria Inc. is studying the financial reports and statements of the company for the current accounting period. Which
accounting head is a part of an off-balance sheet item?
A.
copyrights
В.
bank loan
C.
prepaid office rent
D.
operating lease
Answer:
В. bank loan
Explanation:
A balance sheet shows the total net worth of a business at the end of a financial year. It shows the assets of a business on one side and equity and liabilities on the other.
A balance shows the assets of a business and how they have been financed. On the liabilities, the balance sheet will indicate the short term and long term liabilities. A bank loan represents money obtained from the banks on credit. Bank loan will be a subheading on the liabilities side, especially if the business has loans from different banks.
Answer:
Its D operating Lease
Explanation:
noncash items do not affect
Noncash items do not affect the Cash Flow Statement.
Cash Flow Statements only report the inflow and outflow of cash, not noncash items such as depreciation or inventory write-downs. Noncash items do not affect the cash flow of a company. These items are typically expenses that are recognized on the income statement but do not result in a cash outlay.
Examples of noncash items include depreciation, amortization, and stock-based compensation. These items are important to consider when analyzing a company's financial statements, as they can have a significant impact on the company's profitability and overall financial health. However, because they do not result in a cash outlay, they do not affect the company's cash flow.
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Hey everyone, I just thought you all should know that...
you are AMAZING
you are BEAUTIFUL
you are SMART
you are KIND
you are NOT going to give up on your FIGHT
and you better stay ALIVE!!! <33
Answer:
thanks lol
you too-
true or false? the aggregate supply (as) curve is the total quantity of final goods and services supplied at different price levels.
True. The aggregate supply (AS) curve represents the total quantity of final goods and services that all suppliers in an economy are willing to produce and supply at different price levels
The aggregate supply (AS) curve depicts the total quantity of final goods and services that all suppliers in an economy are willing to produce and supply at different price levels. It represents the relationship between the overall price level in the economy and the total output or GDP that firms are willing to supply. As the price level increases, firms tend to supply more goods and services, resulting in an upward-sloping AS curve. Conversely, as the price level decreases, firms may reduce their production levels, leading to a downward-sloping AS curve in some cases.
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Based on the introduction and the job description, which qualities will Sarah need to look for when considering candidates to fill the position at Sarah’s Fruit Pops? List the top three characteristics.
Answer:
life experiences
Explanation:
high school diploma, college degrees, employment history.
The qualities will Sarah needs to look for when considering candidates to fill the position at Sarah’s Fruit Pops, was an experience.
What are experiences?Experience refers to conscious events in general, and perceptions in particular, as well as the practical knowledge and familiarity produced by these conscious processes. Experience, defined as a conscious event in the broadest sense, entails a subject to which various elements are offered.
The job description, high school diploma, college degrees, and employment history. qualities will Sarah need to look for when considering candidates to fill the position at Sarah’s Fruit Pops
Therefore, By having previous experience in the Fruit Pops, These qualities are Sarah looking for in the candidates.
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Which of the following is usually true
about the demand of consumers who
make more money?
A. They demand less of lower quality products.
B. They demand more of lower quality products.
C. They demand the same amount of lower quality
products.
Answer:
A
Explanation:
Which of the following are characteristics of a scarce resource?
Choose 1 answer:
Choose 1 answer:
(Choice A)
A
The supply of the resource exceeds the demand of the resource.
(Choice B)
B
There is a fixed quantity of the resource available but no demand for it.
(Choice C)
C
There is a demand for that resource with limited supply.
(Choice D)
D
There is limited supply of a resource with no demand for that resource.
(Choice E)
E
The resource has unlimited supply and limited demand.
There is a demand for that resource with limited supply are characteristics of a scarce resource. When the demand for a natural resource exceeds the supply, resource scarcity results, which causes the stock of those resources to decrease.
As a result of rising costs that make the demand resource less accessible to those who are least well-off, this might result in unsustainable supply growth and an increase in inequality. When there aren't enough resources to meet everyone's needs, there is scarce resource. Oil is among the most well-known instances of how resource scarcity affects the United States. Local gas prices will surely climb when oil prices around the world do.
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2. Which country is the top foreign holder of U.S. federal government debt?
a. Germany
b. United Kingdom
c. Japan
d. China
The rebellion that was led by the quasi-Christian movement that broke out in southern China in the 1850s and early 1860s was the
The rebellion that was led by the quasi-Christian movement that broke out in southern China in the 1850s and early 1860s was the Taiping Rebellion.
The Taiping Rebellion was a large-scale uprising against the ruling Qing Dynasty in China. It was led by Hong Xiuquan, who claimed to be the younger brother of Jesus Christ. The movement combined elements of Christianity with Chinese religious beliefs and sought to establish a utopian society with egalitarian principles.
The rebellion began in 1850 and lasted for more than a decade, resulting in widespread violence, destruction, and loss of life. The Taiping forces captured several major cities and posed a significant threat to the Qing Dynasty. However, the rebellion was eventually suppressed with the support of external forces, including the British and French.
The Taiping Rebellion had a profound impact on China's society and history, contributing to the weakening of the Qing Dynasty and paving the way for future political and social changes in the country.
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There are a number of different ethical issues you could discuss with your employees. What topics would serve as a good basis for the beginning of the course?
Which of the following best describes why banks aren't allowed to loan out all of their deposits at once?
A. If banks loaned out all of their deposits, the money supply would grow much too slowly
B. If banks loaned out all of their deposits, it would be impossible to meet customers' demands for withdrawals
C. If banks loaned out all of their deposits, there wouldn't be enough money left to provide new customers with loans
D. If banks loaned out all of their deposits, the government would be unable to calculate the bank's tax burden
Answer:
Answer is B
Explanation:
If banks loaned out all of their deposits, it would be impossible to meet customers' demands for withdrawals. Hence, the correct answer is option B.
What are banks?Banks are financial institutions that accept deposits from customers and use those funds to make loans or invest in other financial assets. Banks provide a range of financial services, including checking and savings accounts, loans, credit cards, and investment services. Banks play a critical role in the economy by facilitating the flow of funds between savers and borrowers and providing liquidity to the financial system.
Banks must maintain a certain amount of reserves, which is a fraction of the deposits they receive, to ensure that they can meet customer withdrawal demands. If banks loaned out all of their deposits, they would not have enough reserves to meet these demands, which would lead to bank runs and financial instability.
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What is the difference between a savings account and a checking account? (Select all that apply.)
Savings accounts pay higher interest than checking accounts.
Deposits in savings accounts, not checking accounts, are used by a bank to invest.
Savings accounts have more restrictions than checking accounts.
Savings accounts are covered more by the FDIC than checking accounts.
A checking account is a bank account you can write checks from, or access several other ways, which tends to make it your go-to, daily transaction bank account. A savings account is where you stash funds that you aren't ready to use yet, often with the goal of accumulating more.
Support Material
Business functions
Activity 1:
Study the following scenarios and answer the questions that flow:
1.1 The sales department is constantly running out of stock because stocks are not ordered on time. The admin clerk is new and files the documents in the wrong place. The purchasing department was not even aware that they should order more stock.
1.1.1 Which department created the problem?
1.1.2 What will the consequences be if the sales department constantly runs out of stock?
1.1.3 How can the problem be solved?
1.2 The creditors are not paid on time and added interest to the account of the business.
1.2.1 Which department created the problem?
1.2.2 What will be the consequences if this continues to happen?
1.3 The workers are always complaining of the third grade stock they have to sell to customers.
1.3.1 Which department created the problem?
1.3.2 How can the problem be solved?
1.4 Clients are constantly surprised on the new items they get on the shelves and some of which they have not seen before?
1.4.1 Which department created the problem?
1.4.2 How can this problem be prevented in future?
In the scenario given, the department that was said to have created the problem is the admin department because the document to show that there was low stocks was filled in the wrong place and as such, the purchasing department was not made aware.
1.1. What will the consequences be if the sales department constantly runs out of stock?The consequences are:
They will have issues with customers demanding product and unfulfilled orders.Complains and lastly they will lose customers.How can the problem be solved?There should be a computerized system on all product and their quantities should be included such that when the product is getting low on stock, the system will alert the admin and appropriate steps to new buy product will be taken
1.2. Which department created the problem?Since the creditors were not paid on time, the department that created the problem is also the admin department
What will be the consequences if this continues to happen?They we be close done.They will not have anyone who will sell products to them.1.3.Which department created the problem?The purchasing department created this problem.
How can the problem be solved?The purchasing department need to buy quality Stocks. They can hire a professional who knows the quality so that he or she can help with the purchase.
1.4.
Which department created the problem?The sales department created this problem
How can this problem be prevented in future? The sales department need to use a method that will not surprise the people such that they can be create an ad or place the new product one at a time not all new product at the same time.
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Type the correct answer in the box. Which Financial Assets can be traded on the stock market?
_____ are tradable financial assets that are sold and bought on the stock market.
Your answer is Treasury Bill!
Hopefully, this helps! :D
Please give branliest!
Falling inventories indicate ______ unplanned inventory investment and a ______ economy.
Falling inventories indicate "negative" unplanned inventory investment and a "growing" economy.
When inventories are falling, it means that the rate of production is exceeding the rate of sales, resulting in a decrease in inventory levels.
This negative unplanned inventory investment occurs when businesses are producing more goods than they can sell. It suggests that demand for products is increasing, leading to a growing economy.
In a growing economy, consumer spending and business activity are typically strong, leading to increased sales.
As sales increase, businesses may deplete their inventories faster than anticipated, resulting in falling inventory levels. This signals a positive economic outlook and indicates that businesses are responding to higher demand by reducing their inventories to meet customer needs.
Therefore, falling inventories indicate negative unplanned inventory investment and a growing economy.
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B. A customer sees a house they want, but it's not for sale because it's owned by someone else. How would you go about approaching the current home owner about possibly selling their home to your buyer?
Answer:
conditional offer is an agreement between two parties that an offer will be made if a specific condition is met. Conditional offers are used in real estate transactions whereby a buyer's offer on a home is contingent on something getting done for the purchase to go through