Milton Industries expects free cash flows of $ 12 million each year.​ Milton's corporate tax rate is 35 %​, and its unlevered cost of capital is 11 %. Milton also has outstanding debt of $ 47.76 ​million, and it expects to maintain this level of debt permanently. a. What is the value of Milton Industries without​ leverage? b. What is the value of Milton Industries with​ leverage? a. What is the value of Milton Industries without​ leverage? The value of Milton Industries without leverage is ​$ nothing million. ​ (Round to two decimal​ places.)

Answers

Answer 1

Answer:

a. What is the value of Milton Industries without​ leverage?

= Expected free cash flows/Unlevered cost of capital

= $12,000,000 / 11%

= 109090909.0909091

= $10.91 million

b. What is the value of Milton Industries with​ leverage?

= Unlevered cash flows + Corporate tax rate*Outstanding debt

= $109,090,909 + 35%*$47,760,000

= $109,090,909 + $16,716,000

= 125806909

= $12.58 million


Related Questions

When the price of spicy sauce was $10dollar sign, 10, people bought 100 jars. When the price increased to $12dollar sign, 12, people only bought 40 jars. What is the price elasticity of demand for spicy sauce?

Answers

Answer:

Price elasticity of demand = 0.33%

Explanation:

A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.

Mathematically, the price elasticity of demand is given by the formula;

[tex] Price \; elasticity \; of \; demand = \frac {Percentage \; change \; in \; price}{Percentage \; change \; in \; demand} [/tex]  

Given the following data;

Old price = $10

New price = $12

Old quantity demanded = 100

New quantity demanded = 40

To find the price elasticity of demand, we would determine the percentage change in price and demand.

[tex] Percentage \; change \; in \; price = \frac {12 - 10}{10} * 100 [/tex]

[tex] Percentage \; change \; in \; price = \frac {2}{10} * 100 [/tex]

[tex] Percentage \; change \; in \; price = \frac {200}{10} [/tex]

Percentage change in price = 20%

[tex] Percentage \; change \; in \; demand = \frac {100 - 40}{100} * 100 [/tex]

[tex] Percentage \; change \; in \; demand = \frac {60}{100} * 100 [/tex]

[tex] Percentage \; change \; in \; demand = \frac {6000}{100} [/tex]

Percentage change in demand = 60%

Now, we can find the price elasticity of demand;

Substituting into the equation, we have;

[tex] Price \; elasticity \; of \; demand = \frac {20}{60} [/tex]

Price elasticity of demand = 0.33%

Match the level of unemployment with the condition of the overall economy. Unemployment equals the natural rate. Cyclical unemployment equals zero. Unemployment is below the natural rate. Unemployment is above the natural rate. Actual GDP is below potential GDP. Actual GDP is equal to potential GDP. Actual GDP is above potential GDP.

Answers

Answer:

Note: The organized question is attached as picture

1. Actual GDP is below potential GDP

Level of unemployment: Unemployment is above the natural rate

2. Actual GDP is equal to potential GDP

Level of unemployment: Unemployment equals the natural rate

3. Actual GDP is above potential GDP

Level of unemployment: Unemployment is below the natural rate

Smart tips for selling to business customers include all the following except: a. Emphasize various benefits that meet the differing needs and interests of each member of the buying center b. Offer fresh insight and ideas in e-mails and other correspondence c. Develop a marketing mix to satisfy the needs of the organization as well as the needs of individual purchasing managers d. Show appreciation by offering desirable gifts to purchasing managers e. Explain how products and services will reduce the firm's risk

Answers

Answer:

c. Develop a marketing mix to satisfy the needs of the organization as well as the needs of individual purchasing managers.

Explanation:

In order to have smart selling in business, one needs to have an emphasis on the various benefits that are offered by the product to the client. Such as on the sales of A/C one needs to offer insights and ideas to the buying customers, show appreciation by providing gifts to the purchasing managers.Even explain how the products and services can help boost profit. Rather than developing a marketing plan to meet the need of the customers as it is not their concern.

It is only necessary to underline vocabulary words identified in a test question. Please select the best answer from the choices provided T F?

Answers

Answer:

The answer you are looking for is false

Explanation:

Got it right edge 2021

Answer:

False

Explanation:

Edge 2021

how much money does a therapyst make an hour/ and how much would they make in a year

Answers

an hour = the average hourly pay for a Therapist in the United States is $28.33 an hour. While ZipRecruiter is seeing hourly wages as high as $52.40 and as low as $12.74, the majority of Therapist wages currently range between $20.91 (25th percentile) to $31.01 (75th percentile) across the United States.

a year = the median annual salary for clinical, counseling, and school psychologists was $85,340 per year, according to the Bureau of Labor Statistics. The lowest 10 percent of workers earned less than $44,040, and the highest 10 percent earned more than $129,310.

Answer:

Explanation:they make 1,000 dollars per hour. I don’t know how much in a year.

What is institutional advertising focused on promoting?
A. A company
B. The Internet
C. A service
D. A good
Please select the best answer from the choices provided

Answers

Answer:

Product advertising focuses on promoting specific individual products while institutional advertising focuses on your overall brand

Answer:

A. A company

Explanation:

Right on EDGE 2021

milk should ______ (keep) in a fridge.​

Answers

Kept

The past tense of Keep is Kept

A cost-based contract is __________. ANSWER Unselected a document that authorizes a supplier to deliver a product or service and often includes key terms and conditions, such as price, delivery, and quality requirements Unselected a document containing terms and conditions for a purchased service that indicate, among other things, what services will be performed and how the service provider will be evaluated Unselected a type of purchasing contract in which the stated price does not change, regardless of fluctuations in general overall economic conditions, industry competition, levels of supply, market prices, or other environmental changes Unselected a type of purchasing contract in which the price of a good or service is tied to the cost of some key input(s) or other economic factors, such as interest rates

Answers

Answer:

a type of purchasing contract in which the price of a good or service is tied to the cost of some key input(s) or other economic factors, such as interest rates.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, cost-based contract, etc.

A cost-based contract is a type of purchasing contract in which the price of a good or service is tied to the cost of some key input(s) or other economic factors, such as interest rates.

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

Donald's home was recently destroyed by a fire. He made an insurance claim for $250,000. Who is responsible for paying him the $250,000?

Question 6 options:

1. the policyholder

2. the insurer

3. the person with power of attorney

4. the rider

Answers

The insurer is the one responsible

Answer:

THE INSURER :D

Explanation:

The Koryu dynasty’s leaders believed that their politics should be guided by the principles of

Shintoism.
Buddhism.
Confucianism.
Taoism.what is commodity

Answers

Answer:

is confucianism

Explanation:

please don't hate me if it's wrong

Two reasons why excellent customer service is important to every business

Answers

1) Prevents business failure

About 96% of American businesses close their doors within 10 years. One of the contributing problems is poor customer service. Buyers become frustrated over small problems that are not addressed. It happens when a business does not have good customer service associates who follow up on questions and promptly fill requests.

2) Creates endorsements

Loyal customers provide positive endorsements and good online reviews that can help businesses strengthen their brand. A loyal customer, on average, is 10 times more valuable than their first purchase. Research shows that people often make purchasing decisions based on recommendations from family and friends vs. advertising messages. Here are four statistics:

About 97% of customers will tell others about very good or excellent customer service experiences.
Nearly 70% of people would spend more money with a company that has excellent customer service.
Approximately 24% of satisfied customers will return to a business two or more years after a good customer service experience.
Research shows that 59% of people would try a new company to receive better customer service.


Hope this helps :) if you need more I can help

The demand for this type of good rises when income falls and falls when
income rises.
O substitutes
o inferior
O normal
O complements

Answers

Answer:

o inferior

Explanation:

The inferior goods shown the inverse relationship between the demand and the income. If the demand of the goods is increased so the income would fall and if the demand of the goods fall so the income would rises

So this represent that the good is an inferior good

Hence, the second option is correct

An organizational model that consists of a company's overseas subsidiaries and is characterized by centralized decision making
and tight control by the parent company over most aspects of worldwide operations is known as the model.
A. international
B. multinational
C. global
D.
transnational
E. intranational

Answers


A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. These companies, also known as international, stateless, or transnational corporate organizations tend to have budgets that exceed those of many small countries.

Are there any Aries in here and if so is it true that you liked to be touched on the head?

Answers

Answer:

umm no i dont no one can touch my hair to prove i am an aries my birthday is on march 28

Explanation:

please give brainliest

yes i actually like having my head touched :)

Which change will cause the gravitational force between a baseball and a soccer ball to increase?

removing the outer layer of the baseball
moving the balls farther apart
wrapping the soccer ball in layers of duct tape
using a baseball with a thinner leather

Answers

Answer:

its "wrapping the ball in layers of duck tape" or just c

Explanation:

Which of the following best explains the significant increases in the equilibrium prices for higher education in the United States since the 1980s? The supply of higher education is highly price elastic, and demand has increased substantially. The demand for higher education is highly price inelastic, and the supply has decreased substantially. The demand for higher education is highly price elastic, and the supply has decreased substantially. The supply of higher education is highly price inelastic, and demand has increased substantially.

Answers

Answer: The supply of higher education is highly price inelastic and demand has increased substantially.

Explanation:

The option that best explains the significant increases in the equilibrium prices for higher education in the United States since the 1980s is that the supply of higher education is highly price inelastic and demand has increased substantially.

Price inelastic means that a change in price has little effect on the demand for education and since there has been an increase in the demand for education, the suppliers will increase the price which led to the increase in equilibrium price.

Please Help!!!! My 5th time posting this please actually help me!


In the workplace, new devices and technologies are transforming the way we exchange information and conduct business. List and concisely describe at least six electronic communication channels used most commonly by businesspeople today.

Answers

Answer: My answer is in the photo below. Hope it helps.

Shelly Ford is starting a fashion boutique in an upscale mall near San Antonio. She wants to open her store during the time period in which a business like hers can realistically enter the new market. Shelly is trying to open her business while the ________ is open.

Group of answer choices

safe harbor

window of opportunity

portal of entry

doorway of opportunity

safety zone

Answers

Answer:

I cant understant

Explanation:

Can you just write it in a paper then pic it

Mill Company began operations on January 1, 20X1, and recognized income from construction-type contracts under different methods for tax purposes and financial reporting purposes. Information concerning income recognition under each method is as follows: Year Tax Purposes Book Purposes 20X1 $ 400,000 $ 0 20X2 625,000 375,000 20X3 750,000 850,000 Required: Assume the income tax rate is 21% in all years and that Mill has no other temporary differences. In its December 31, 20X3, balance sheet, what amount of deferred income taxes should Mill report

Answers

Answer:

Deferred tax asset balance on  December 31, 20X3 =   $115,500

Explanation:

The computation of the amount of deferred income taxes should Mill report is shown below:

Year   Tax purpose   Book purpose   Difference   Deferred tax book

20X1     $400,000          $0                $400,000        $84,000

20X2    $625,000     $375,000         $250,000        $52,500

20X3     $750,000     $850,000        ($100,000)        ($21,000)

Deferred tax asset balance on  December 31, 20X3 =   $115,500

Which of the following is a benefit of U.S. companies doing business
domestically instead of internationally?

A. Having to exchange currencies

B. Having familiarity with laws and regulations

C. Having to negotiate payment options with the world bank

D. Having to learn about different customs, taboos, and manners from different countries​

Answers

Answer:

A

Explanation:

One of the major drawbacks of international business is currency exchange rates. Since, economies are unpredictable, there is always an economic risk associated with international trade. A can get expensive or cheaper with the currency exchange rates of other countries. Leading to an unpredictable balance of trade.

However, this risk is not present in domestic business. So for U.S. companies doing business  domestically instead of internationally can save them from tremendous economies challenges caused by currency exchange rates.

Answer:

Having familiarity with law and regulations

Explanation:

Tim Horton wants to raise funds to open a branch of their coffee shop in Trinidad. To raise the funds, Tim Horton would sell bonds 100 $1,000 par value with a coupon interest rate of 6%. The bonds would mature in 15 years and interest would be paid semi-annually. The required rate of return is expected to be 8%.

Requirement:
a) Calculate the value of one bond
b) What is the total amount Tim Horton would raise if all bonds were sold?

Answers

Answer:

a) The value of one bond is $837.08.

b) The total amount Tim Horton would raise if all bonds were sold is $83,708.

Explanation:

a) Calculate the value of one bond

This can be calculated as follows:

Annual coupon = Bond face value * Coupon interest rate = $1,000 * 6% = $60

Annual coupon discount factor = ((1 - (1 / (1 + r))^n) / r) .......... (1)

Where;

r = required semi-annual rate of return = required annual rate of return / number of semi-annual in a year = 8% / 2 = 0.08 / 2 = 0.04

n = number of semi-annuals = number of years * number of semi-annual in a year = 15 * 2 = 30

Substituting the values into equation (1), we have:

Semi-annual coupon discount factor = ((1-(1/(1 + 0.04))^30) / 0.04) = 17.2920333006645

Present value of coupon = ((Annual coupon / number of semi-annual in a year) * Semi-annual coupon discount factor) = (($60 / 2) * 17.2920333006645 = $528.76

Present value of the face value of the bond = Face value of the bond / (1 + r)^n = ($1,000 / (1 + 0.04)^30 = $308.32

Therefore, we have:

Bond value = Present value of coupon + Present value of the face value of the bond = $528.76 + $308.32 = $837.08

Therefore, the value of one bond is $837.08.

b) What is the total amount Tim Horton would raise if all bonds were sold?

Number of bonds expected to be sold = 100

Value of one bond = $837.08

Total amount that would be raised = Number of bonds expected to be sold * Value of one bond = 100 * $837.08 = $83,708

Therefore, the total amount Tim Horton would raise if all bonds were sold is $83,708.

Which of the following is an example of a long-term debt?
A. A student loan.
B. A debit card purchase.
C. A term life insurance policy.
D. A stock portfolio.

Answers

answer is A. a student loan

HELPPPPPPPP WIL MARK BRAINLIEST

What types of decisions affect the day-to-day activities of an operation?
Group of answer choices

Those involving new product development

Those involving process technology

Those involving planning and control

Those involving performance measurement

Answers

Answer:

those involving process technologies

What should customer service representatives use to achieve a win-win outcome between customers and their employer?

both hard and soft skills
sales strategies
persuasion
goals and objectives

Answers

Answer:

i think it is the 3rd one I'm not sure but I need help on one of mine and it would be really good if you can help me I will appreciateit

If the labor force is 1000 workers, but 32 are unemployed, what is the unemployment percentage?

Answers

3.2% is the unemployment percentage, if the labor force is 1000 workers, but 32 are unemployed.

What is the reason of unemployment?

Unemployment is influenced by a lot of circumstances on both the demand and supply sides. Rising interest rates, a global recession, and a banking meltdown may all contribute to demand-side decreases. Underemployment and structural employment have a big impact in the supply side.

Thus, it is 3.2 percent.

For more details about reason of unemployment, click here:

https://brainly.com/question/9288794

#SPJ1

Identifying specific marketing activities, determining the time required to complete each activity, and organizing marketing activities into the proper sequence are examples of the steps involved in creating a(n):

Answers

Answer:

e. implementation timetable

Explanation:

This set of sequential activities can be described as an implementation schedule, which is developed in an organization with the aim of organizing tasks according to the needs of development and completion so that the objectives of a given project are achieved effectively. .

It is also necessary that the schedule is monitored and updated when necessary, according to the needs of a given project and its demands over time.

_________ is the removal of items from a store with the intention of not paying for them.

a. shrinkage
b. shoplifting
c. control
d. none of the above

Answers

Answer:  lol that should be shoplifting

Shoplifting.........

1. Product A, a bottle of liquid breath fresheners, and Product B, chewable breath fresheners. Study the
two products, their plus and minus factors in terms of attracting customer interest
. Which company will
have competitive advantage, the manufacturer of Product A or Product B? Explain your answer.​

Answers

Answer:

Manufacturer A will have a competitive advantage. (Reasons are stated below)

Explanation:

Product A: Liquid breath fresheners are more advantageous compared to chewable breath fresheners because they

1. Cause less distraction: Unlike chewable gums that project an unserious or unprofessional image, especially, in official settings, liquid breath fresheners can be used without drawing much attention. Many customers who work or school will thus prefer this option.

2. They can be used and will go into effect within a short time frame: Unlike gums that can be chewed for some time before there is a noticeable effect, liquid breath fresheners can be used quickly with instant effects.

For these stated reasons, customers will prefer Product A and they will thus have a competitive advantage over Product B.

Product is the management term that implies the goods and services that are manufactured using the raw materials and are produced as the final goods and services for the consumption of the customers to satisfy or fulfill their needs.  

Manufacturer A will have an edge over competitors.

Product A: Compared to chewable breath fresheners, liquid breath fresheners offer more benefits.

1. Distract less: Unlike chewy gums, which present an unprofessional or unintellectual image, liquid breath fresheners can be used without attracting much attention, especially in official settings.  As a result, many consumers who work or go to school will prefer this alternative.

2. They can be used right away and have an immediate impact: Unlike gums, which must be chewed for a long moment before showing any influence, liquefied mouth deodorant sticks may be used right away and have a direct influence.  

Customers will prefer Product A for the reasons stated, which gives the company a competitive advantage over Product B.

To know more about the product and its manufacturing, refer to the link below:

https://brainly.com/question/14016003

It’s a good idea to use a _____ to track your job hunting efforts.


map

scrapbook

journal

calendar

Answers

answer is journallll

Sharon contributed property to the newly formed QRST Partnership. The property had a $100,000 adjusted basis to Sharon and a $160,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Sharon is treated as a general partner. She is allocated 30% of QRST's profits and 20% of QRST's losses. Sharon's basis in the partnership interest after the formation transaction is:

Answers

Answer: $37000

Explanation:

Sharon's basis in the partnership interest after the formation transaction is calculated below:

Adjusted basis of property to Sharon = $100,000

Less: Basis in mortgage = $90000 × (100% - 30%) = $90000 × 70% = $63000

Then, Sharon's basis in the partnership interest after the formation transaction will be:

= $100000 - $63000

= $37000

Other Questions
Multi answer inequality! Please help and comment only if you know! The figure below shows a food chain that might exist in a meadow.Meadow Food ChainOwlGreen plants BeetleToadSnakeWhich organism is the primary consumer in this food chain?owlBtoadbeetleplant leaf You want to save at least $10,000 for a down payment on a new car. In cell B6, enter a formula to calculate how much you will have saved by putting away $500 per month for 24 months at a 1.5% annual interest rate. Use the appropriate cell references. Remember to use a negative value for the Pmt argument. There is no money in the account yet and payments are applied at the end of every month, so omit both the Pv and Type arguments. (Hint: Use the FV function.) Choose the correct verb form to complete each sentence.3. Ella le (dio, di) un regalo.4. Nosotros (vimos, vieron) la pelcula en espaol.5. Yo (sali, sal) anoche.6. Ustedes (aprendi, aprendieron) mucho.8. Nosotros (asist, asistimos) y ellos (asisti, asistieron) tambin.i will give brainilest and five stars and 20 points for the best answerplease help When a basketball is dropped from a height of 3 meters to the floor, gravitational potential energy is converted to kinetic energy. A constitutional arrangement whereby power is divided between national and subnational governments is a ________. What happens to the value of the expression b-1b1b, minus, 1 as bbb increases? Ejercicio de reflexin.Escribir el participio pasado usado como verbo o como adjetivo.1. Nuestros vecinos se han trasladar)a San Jos, la capital deCosta Rica2. Ella es una persona muy (informar); lee el peridico en la Red.3. Sus libros y papeles se han (perder)4. Yo no he (ver)esa pelcula todava.5. Qu cansado ests! No has (dormir)bien?6. Jos ha (romper)la maceta de geranios.7. Quin ha (traer)un regalo para papa?8. Qu pena! El rbol est (morir)9. La tierra est (cubrir)de nieve.10. He (pensar)mucho en ti. 3. Hessa is building a scale model of a park. She uses a scale of 12 cm to represent 1.5 m. a) The actual length of the bridge is 20 m. What is the length of the model bridge? b) In the model, the height of the climbing frame is 10 cm. What is the actual height of the frame? What is the Great Law of Peace? Help Please!!!!what is the correct form of the verb that should go in the blank?He had already _____ many laps before he got tired. A. swamB. swimmedC. swumD. swammed Does anyone know how to do this? Critical thinkers evaluate the credibility, accuracy and reliability of material, including where it is coming from and who is presenting it.TrueFalse app app[tex] \geqslant a[/tex] The circumference of a circle is m. What is the area , in square meters ? Express your answer in terms of pi Erin buys a bag of peanuts that weighs 3/4 of a pound later that week the bag is 2/3 full how much dose the bag of panuts wiegh now Why are most anions basic in H2O? Give formulas of four anions that are not basic. Given the equation y=3(2)* + 2, what is the value of y when x = 4?A. 8B. 50C. 256D. 770 Factor the following expression, and verify that the factored expression is equivalent to the original16x-8x-3 Question 7 of 10What happens to the density of air as altitude decreases?A. The density of air changes randomly.O B. The density of air decreases.C. The density of air stays the same.D. The density of air increases.