What is the value of firm

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1. MindX has expected earnings before interest and taxes of $50,000, an unlevered cost of capital of 15 percent, and a tax rate of 40 percent. The company also has $10,000 of debt that carries a 7 percent coupon. The debt is selling at par value. What is the value of this firm?

$222,579.31

$223,333.33

$224,108.16

$204,000

$225,476.91

2. A stock has returns of 2 percent, 18 percent, -25 percent, and 15 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?

Choose correct answer below:

-25.4 to 34.1 percent

-36.7 to 41.7 percent

-8.7 to 11.6 percent

-17.1 to 22.1 percent

-56.3 to 61.3 percent

Reference no: EM131995443

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