Levered, inc., and unlevered, inc., are identical in every way except their capital structures. each company expects to earn $29.3 million before interest per year in perpetuity, with each company distributing all its earnings as dividends. levered’s perpetual debt has a market value of $94 million and costs 8 percent per year. levered has 2.6 million shares outstanding that sell for $108 per share. unlevered has no debt and 4.8 million shares outstanding, currently worth $83 per share. neither firm pays taxes. what is the value of each company's equity? (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.)

Levered -  $280,800,000

Unlevered - $398,400,000

Explanation:

The formula to compute the equity value is shown below:

Equity value = Number of outstanding shares × current worth per share

For Levered, the equity value would be

= 2,600,000 shares × $108

= $280,800,000

For Unlevered, the equity value would be

= 4,800,000 shares × $83

= $398,400,000

We simply multiply the number of outstanding shares with the current worth per share so that the equity value can come.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.