Calculate the value of the company

Reference no: EM131947175

Question: Bob's Farm Rental and Party Supply posted an EBIT of $45,000 and has no investments in working capital or assets. Shareholders are requiring a return of 22%. Calculate the value of the company. Assume a tax rate of 15%. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131947175

Questions Cloud

The yield-to-maturity of gladstones debt : the initial value of gladstones equity without leverage. the yield-to-maturity of gladstones debt is

What are the company capital structure weights on book value : What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places).

About mullineaux capital structure : The company president has approached you about Mullineaux’s capital structure.

Assuming there are no taxes and hubbards debt is risk-free : assuming there are no taxes and hubbards debt is risk-free, the interest rate on the debt is ________%.

Calculate the value of the company : Bob's Farm Rental and Party Supply posted an EBIT of $45,000 and has no investments in working capital or assets. Shareholders are requiring a return of 22%.

Advantages and disadvantages of establishing such account : What are the advantages and disadvantages of establishing such an? account?

What is the interest rate in the first year : Bob borrows 1000 from Ed at effective annual interest rate i, agreeing to repay in full at the end of one year.

Discuss about the contractual nature of the events : If yes, how and when did the offer, acceptance, consideration, etc occur? Other observations or comments about the contractual nature of these events?

What is its present value : If other investments of equal risk or an 8% annually, what is its present value.

User Account

All Pages