What is the value of company-shoes company

Assignment Help Finance Basics
Reference no: EM132466986

Shoes Company has expected earnings before interest and taxes of $54,200, an unlevered cost of capital of 15.1 percent, and a combined tax rate of 30 percent. The company also has $12,000 of debt that carries a coupon rate of 7 percent. The debt is selling at par value. What is the value of this company?

Reference no: EM132466986

Questions Cloud

Assignment - Data Structure and Algorithms Question : Assignment - Data Structure & Algorithms Question. Explain, in words, how this situation could occur. Show a trace that demonstrates the problem occurring
What is the amount of the annual interest tax shield : What is the amount of the annual interest tax shield if the tax rate is 28 percent?
What is the total market value of the company : The other shareholders have agreed to have the company borrow the $262,000 needed to repurchase her shares of stock.
How much income was allocated to martha assuming net income : How much income was allocated to Martha assuming net income was 36,000?Determine Jones' ending capital balance assuming net income was 50,000?
What is the value of company-shoes company : The company also has $12,000 of debt that carries a coupon rate of 7 percent. The debt is selling at par value.
What is the value of the capital in excess of par account : The firm just announced a 100 percent stock dividend. What is the value of the capital in excess of par account after the dividend?
How much will stacy further invest to comply : The computer carries a liability of Php8,500 which the partnership will assume. How much will Stacy further invest to comply with their agreement?
What is the weighted average cost of capital : Pots and Pans Corporation has debt of $27,000 , a leveraged value of $79,300, a pretax cost of debt of 7.5 percent a cost of equity of 14.3 percent
What amount would be reported as total owners equity : What amount would be reported as total owners' equity immediately after the investments? K. Billie, S. Piper, and E. Rose are forming a partnership

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd