What is the value of milano pizza club

Assignment Help Finance Basics
Reference no: EM132444333

Milano Pizza Club owns a chain of three identical restaurants for their Milan style pizza. Each store has $270,000 in debt outstanding and a debt-to-equity ratio of 30 percent. The prevailing market interest rate is 9.5 percent. An equivalent all-equity financed store would have a discount rate of 15 percent. For each store, the estimated annual sales are $1,000,000, costs of goods sold are $400,000, and overhead costs are $300,000. Each of these cash flow streams is assumed to be a perpetuity. The corporate tax rate is 40 percent. Using the FTE approach, what is the value of Milano's Pizza Club?

Reference no: EM132444333

Questions Cloud

Are there any assumptions that need to be met : Kirk (2016) provides numerous examples of interactivity, but our text is static. Interactive visualizations are an excellent tool when utilized.
Write about perception and individual decision making : Write a paper about "Perception and Individual Decision Making"
Determine the approximate percentage appreciation : Determine the approximate percentage appreciation or depreciation of the NASDAQ Composite, Dow Jones Industrial Average, and the S&P 500
Explain the relevancy of each source to your topic : Identify who has tried to answer the question before by doing the following: Explain the relevancy of each source to your topic.
What is the value of milano pizza club : The corporate tax rate is 40 percent. Using the FTE approach, what is the value of Milano's Pizza Club?
Why are so many indian arranged marriages successful : Why are so many Indian arranged marriages successful?analyze the article and argue for or against the idea proposed in this text. Use evidence from the text
What is prepayment risk : What is prepayment risk? How does prepayment risk affect the cash flow stream on a fully amortized mortgage loan?
What is the effect of each of the alternative offering price : What is the effect of each of the alternative offering prices on the existing price per share?
Discuss costs of compromised data integrity breaches : In 600 words or more, discuss the risk and costs of compromised data integrity breaches. Focus on integrity not confidentiality. Look at military.

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