Business, 04.04.2020 04:38 Kemby12

As the result of stockholder pressure, RJR Nabisco is considering spinning off its food division. You have been asked to estimate the equity beta for the food division and decide to do so by obtaining the betas of comparable publicly traded firms in that line of business. The average levered beta of these firms is 0.95, and the average debt/equity ratio of these firms is 35 percent. Nabisco's food division is expected to have a debt/equity ratio of 35 percent. The marginal corporate tax rate is 36 percent. What would be the levered beta of RJR Nabisco's food division

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:50

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?

Answers: 1

Answer

Business, 22.06.2019 12:20

In terms of precent, beer has more alcohol than whiskey true or false

Answers: 1

Answer

Business, 22.06.2019 17:00

Zeta corporation is a manufacturer of sports caps, which require soft fabric. the standards for each cap allow 2.00 yards of soft fabric, at a cost of $2.00 per yard. during the month of january, the company purchased 25,000 yards of soft fabric at $2.10 per yard, to produce 12,000 caps. what is zeta corporation's materials price variance for the month of january?

Answers: 2

Answer

Business, 22.06.2019 17:30

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $

Answers: 2

Answer

You know the right answer?

As the result of stockholder pressure, RJR Nabisco is considering spinning off its food division. Yo...

Questions