A firm has an operating profit of $300,000, interest of $35,000, and a tax rate of 40 percent. The firm has an after-tax cost of debt of 5 percent and a cost of equity of 15 percent
The firm's target capital structure is set at a mix of 40 percent debt and 60 percent equity. Assuming this as the optimum capital structure, the value of the firm is ________.
A) $1.4 million
B) $2.2 million
C) $1.8 million
D) $6.0 million
C
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When distributing reports and proposals electronically, why is it preferable to send documents as PDF files instead of word-processor files?
What will be an ideal response?
The bottom rows of a house of quality indicate the interrelationships between the characteristics
Indicate whether the statement is true or false
How is the contribution margin calculated when utilizing variable costing?
A) Sales less variable cost of goods sold B) Sales less variable cost of goods sold, less variable selling and administrative expenses C) Sales less cost of goods sold D) Sales less variable cost of goods sold, less variable selling and administrative expenses, less fixed cost of goods sold, less fixed selling and administrative expenses
When an additional partner is admitted to a partnership by contribution of assets to the partnership
A) the total assets of the partnership do not change B) no liabilities can be contributed at the same time C) the amount of the cash contribution is the same as the amount of the debit to the new partner's capital account D) the total of the owner's equity accounts increases