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Snickers expects EBIT of $21.550 million every year forever. The company currently has no debt, and its cost of equity is 15 percent. The company can borrow at 8.5 percent and the corporate tax rate is 40 percent.
1. What is the current value of Snickers?
2. What will the value of the company be if Snickers takes on debt equal to 40% of it’s unlevered value?
3. What is the cost of equity and weighted--average cost of capital of Snickers with the levered capital structure shown in part 2?
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calculate the Variable overhead efficiency variance and fixed overhead volume variance and overhead spending variance
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The internal rate of return: may produce multiple rates of return when cash flows are conventional. is best used when comparing mutually exclusive projects. is rarely used in the business world today.
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You estimate that you will owe $48,000 in student loans by the time you graduate. The interest rate on your student loan is 4.6%. If you want to have this debt paid in full within 8 years, how much must you pay each month?
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