Business, 02.10.2019 01:00 Sauceyx7

Summers, inc., is an unlevered firm with expected annual earnings before taxes of $31.3 million in perpetuity. the current required return on the firm’s equity is 11 percent and the firm distributes all of its earnings as dividends at the end of each year. the company has 2.45 million shares of common stock outstanding and is subject to a corporate tax rate of 22 percent. the firm is planning a recapitalization under which it will issue $40.1 million of perpetual 6.4 percent debt and use the proceeds to buy back shares. a-1. calculate the value of the company before the recapitalization plan is announced. (do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e. g., 1,234,567.)a-2. what is the price per share? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:40

Which of the following is false regarding the links between jit and quality? a. jit increases the cost of obtaining good quality. b. as quality improves, fewer inventory buffers are needed; in turn, jit performs better. c. jit reduces the number of potential sources of error by shrinking queues and lead times. d. inventory hides bad quality; jit immediately exposes it. e. if consistent quality exists, jit allows firms to reduce all costs associated with inventory.

Answers: 3

Answer

Business, 22.06.2019 01:00

How does the economy of cuba differ from the economy of north korea? in north korea, the government’s control of the economy has begun to loosen. in cuba, the government maintains a tight hold over the economy. in cuba, the government’s control of the economy has begun to loosen. in north korea, the government maintains a tight hold over the economy. in north korea, there is economic uncertainty in exchange for individual choice. in cuba, there is economic security in exchange for government control. in cuba, there is economic uncertainty in exchange for individual choice. in north korea, there is economic security in exchange for government control.\

Answers: 2

Answer

Business, 22.06.2019 01:50

Which statement below best describes george waring's approach to solving the problems of water-borne illness? a. waring is going with his "gut," because he believes that instincts and emotions are the best guides for action. b. waring efficiently and thoroughly lays out the case for why the problems are too large and overwhelming to be solved: people should just move out of cities back to their farms. c. waring has gathered the testimonies of people who live in densely populated areas in order to learn how they themselves have solved their problems. d. waring exhibits the industrial age's increased respect for and reliance on science and the scientific method.

Answers: 1

Answer

Business, 22.06.2019 10:10

Rats that received electric shocks were unlikely to develop ulcers if the

Answers: 1

Answer

You know the right answer?

Summers, inc., is an unlevered firm with expected annual earnings before taxes of $31.3 million in p...

Questions