The current market value of the assets of ABCD is $86.28 million. The call option value on the firm's assets is $53.09 million. What is the market value of the firm's debt

Answers

Answer 1

Answer: $33.19 million

Explanation:

From the question, we are informed that the current market value of the assets of ABCD is $86.28 million and that the call option value on the firm's assets is $53.09 million.

The market value of the firm's debt will be the difference between the market value of assets and the call option value of the firm's assets. This will be:

= $86.28m - $53.09m

= $33.19 million


Related Questions

Daily demand for a product is 160 units, with a standard deviation of 35 units. The product is ordered on a pre-established (fixed) schedule and the review period is 5 days and the lead time is 10 days. At the time of review, there are 30 units in stock. If 99 percent service probability is desired, how many units should be ordered?

Answers

Answer:

2686

Explanation:

Given that :

Daily demand (D) = 160

Standard deviation (s) = 35

Review period (T) = 5 days

Lead time (L) = 10 days

Number in stock (I) = 30 units

Service probability α = 99%

Quantity to order Q;

Q = D(T + L) + Z*s + √(T + L) - 1

Zscore p(Z < 0.99) = 2.326 = 2.33(Z probability calculator)

Q = 160(5 + 10) + 2.33 * 35 * √(10 + 5) - 30

Q = 160(15) + (2.33 * 35 * 3.8729833) - 30

Q = 2400 + 315.841788115 - 30

Q = 2685.841788115

Q = 2686

What can people do better to make a better place in this earth

Answers

Answer:

not be so selfish and quit worrying about materialistic things and worry about the better being of others but be kind n respectful to your self at the same time

We can always recycle ♻️. A clean environment can help animals.

Which of these elements contributes toward globalization of the economy?

Answers

The element which contributes to the globalization of the economy is the use of foreign labor. Therefore, A is the correct option.

What is globalization?

Globalization is the process of globalizing trade, goods, and services. Under this process, the trade, import, and export barriers are at a minimum. Not only the goods and services but the culture and customs of one country are also seen to be adopted by other countries under globalization. Globalization is the process of interacting with other countries by globalizing.

The process of globalization involves many ways including people-to-people contact such as visiting other countries; increasing trading by enhancing the value of imports and export; increasing the cultural contact between the countries such as Yoga which is an ancient wisdom of India is now becoming a part of the daily routine of many people around the globe.  

Thus, the employment of foreign labor is a factor in the globalization of the economy. As a result, choice A is the best one.

Learn more about globalization here:

https://brainly.com/question/15283031

#SPJ2

The given question is incomplete. The complete question is given below.

Which of these elements contributes toward globalization of the

economy?

A. Use of foreign labor

B. Import duties and tariffs

C. Anti-immigration policies

D. Opportunity costs

HelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelpHelp

Answers

Answer:

okokokokokokokokokokokookokokokokokokok

Answer:

Idkidkidkidkidkidkidk

Explanation:

Suppose the demand for a price maker’s product is estimated to be Qd = 100 – 2P and its total cost function is C(Q) = 10Q. Under first-degree price discrimination, what will be the firm’s profits?

Answers

Answer: See explanation

Explanation:

From the question,

Qd = 100 – 2P

We have to use the subject of the formula to get the expression for Price(P). This will be

2P = 100 - Qd

P= (100 - Qd) /2

P = 50 - 0.5Q

Also, C(Q) = 10Q

MC = 10

Since P = MC

50 - 0.5Q = 10

Collect like terms.

50 - 10 = 0.5Q

0.5Q = 40

Q = 40/0.5

Q = 80

Recall that,

P = 50 - 0.5Q

= 50 - 0.5(80)

= 50 - 40

= 10

The profit will be calculated as:

= TR - TC

where,

Total revenue = Price × Quantity

= 80 × 10 = 800

Total cost = 10Q = 10 × 80 = 800

Profit = 800 - 800 = 0

A bond has a coupon rate of 8.6 percent and 5 years until maturity. If the yield to maturity is 8.2 percent, what is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers

Answer:

$1,015.89

Explanation:

Annual coupon = 1000*8.6% =86

Present value of annuity = Annuity[1-(1+interest rate)^-time period]/rate

= 86*[1-(1.082)^-5]/0.082

= 86*3.971751714

Present value of discounting factor=1000/1.082^5

= 674.316359

= 1000*0.674316359

Price of bond = Annual coupon*Present value of annuity factor(8.2%,5) + $1000*Present value of discounting factor(8.2%,5)

Price of bond = 86*3.971751714 + $1000*0.674316359

Price of bond = 341.570647404 + 674.316359

Price of bond = 1015.887006404

Price of bond = $1,015.89

It is _______ for a company to issue equity than debt; it is ________ for an investor to buy equity in a company than debt in the same firm. a. safer; safer b. safer; riskier c. riskier; safer d. riskier; riskier e. none of the above enter a, b, c, d or e

Answers

Answer:

b. safer; riskier

Explanation:

In Business management, there are two (2) main methods that business owners could use to finance their businesses and these includes equity and debt financing.

Generally, any business owner that uses equity to finance its business rather than relying on the use of debt, simply has a lower risk of going bankrupt.

Hence, it is safer for a company to issue equity than debt; it is riskier for an investor to buy equity in a company than debt in the same firm.

A mirror should be centered on a wall. The mirror is 4 feet wide and the wall is 20 feet wide. Which equation helps determine the distance x on each side of the mirror?

Answers

Answer:

A).  x + 4 + x = 20

Multiple-choices

A).  x + 4 + x = 20

B).  4 + x + 4 = 20

C).  x = 20 + 4 + 4

D).  4 = 20 + x + x

Explanation:

The mirror will be in the middle of a wall which is 20 feet wide.

If the mirror is 4 feet, then 4 will be in the middle.

X will be on either side of the 4feet mirror.

Therefore:

x + 4 + x =20

what should i do for college?

Radiology
Nursing
Crime Scene Technician
X-ray Technician
Vet Assistant
Dental Assistant
Accounting
Elementary Teacher
Pre-School Teacher

Answers

Crime scene technician

The tables below show the spending and revenue for Littleland in 2010. Use these tables to answer the following questions.
Spending Category Value (in Millions)
Education $320M
Welfare and Social Security $890M
Healthcare $270M
Defense $120M
Payments on Debt $170M*
Other $240M
*This payment covers total interest owned only.
Revenue Category Value (in Millions)
Income Tax $800M
Sales Tax $270M
Corporate Tax $300M
Social Insurance $340M
GDP in 2010 $7.3 Billion
Total Debt as of 2009 $3.5 Billion
1) How much money (in millions) did Littleland need to borrow in 2010 to finance its government spending?
2) At the end of 2010, what was Littleland's debt to GDP ratio? Give your answer to the nearest whole percentage point.

Answers

Answer:

Explanation:

The total Expenditure  is the summation of all the following parameters ( Spending on Education, Spending on Welfare and social security,  Spending on Healthcare, Spending on Defense, Payments on Debt, Other Spending)

The total Expenditure = $(320+890+270+120+170+240) million

The total Expenditure = $2010 million

However;

The total Revenue = Income Tax+ Sales Tax+ Corporate Tax+ Social Insurance

The total Revenue = $(800+270+300+340) million

The total Revenue = $1710 million

The debt now will be the difference between the total expenditure and the total revenue.

Debt = $(2010-1710) million

Debt = $300 million

Therefore, Littleland needs to borrow  $300 million

At the end of 2010, the total debt = Total debt of 2009 + amount borrowed in 2010

Total debt of 2009 = $ 3.5 billion

amount borrowed in 2010 = $0.3 billion

At the end of 2010, the total debt =  $(3.5+0.3) billion

At the end of 2010, the total debt =  $3.8 billion

Therefore; the Debt to GDP ratio in 2010 = 3.8/7.3 = 52.05%

The Debt to GDP ratio in 2010 = 52.05%

To the nearest whole percentage ≅ 52%

The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 11300 gallons of direct materials that actually cost $41810 were used to produce 6800 units of product. The direct materials quantity variance for last month was

Answers

Answer:

9,200 favourable

Explanation:

Calculation for direct materials quantity variance for last month

First step is to calculate the Standard quantity

Standard quantity = 6,800 units × 2 gallons

Standard quantity = 13,600gallons

Now let Calculate direct materials quantity variance for last month Using this formula

Direct materials quantity variance = Standard Price × (Standard Quantity - Actual Quantity)

Let plug in the formula

Direct materials quantity variance = $4 × (13,600 gallons - 11,300gallons)

Direct materials quantity variance = $4 × 2,300 gallons

Direct materials quantity variance = $9,200 favorable

Therefore The direct materials quantity variance for last month was $9,200 favourable

A well-defined road map to achieving a career goal is a/an: ​

Answers

Answer:

A career plan

Explanation:

A career plan is kinda like a road map for achieving your career goals!

Hope this helps and peace and love

A cost is $11,000 at 1,000 units, $12,000 at 2,000 units, and $13,000 at 3,000 units. Using the high-low method, how much is the fixed portion of these costs

Answers

Answer:

Fixed costs= $10,000

Explanation:

Giving the following information:

Highest activity cost= $13,000

Highest activity= 3,000 units

Lowest activity cost= $11,000

Lowest activity= 1,000 units

To calculate the unitary variable cost and total fixed cost, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (13,000 - 11,000) / (3,000 - 1,000)

Variable cost per unit= $1

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 13,000 - (1*3,000)

Fixed costs= $10,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 11,000 - (1*1,000)

Fixed costs= $10,000

In the formula FV=P(1+r)n, what is the n or period if the term is 10 years compounded yearly at 12% per annum?
10 b) 40 c) 120 d) 12

Answers

Answer:

a 10

Explanation:

The formula to compute the future value is shown below

Future value = Present value × (1 + rate of interest)^number of years

where,

The Rate of interest is 10%

And, the number of years or term is 10 years

Therefore as per the given situation, the correct option is a.

hence, the same is to be considered

A proposed new project has projected sales of $195,000, costs of $92,000, and depreciation of $25,200. The tax rate is 25 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Operating cash flow
EBIT +Depreciation - Taxes 58,800
Top-down
Tax-shield
Bottom-up

Answers

Answer:

EBIT + Depreciation - Tax

= (195000-92000-25200) + 25200 - 19450

= $83,550

Top down OCF = EBIT - (EBIT * Tax) + Depreciation  

Top down OCF = (195000-92000-25200) - ((195000-92000-25200) * 0.25) +25200

Top down OCF = 77800 - 19450 + 25200

Top down OCF = $83,550

Tax shield OCF = (Sales - Exp) (1-tax) + (Dep * tax)  

Tax shield OCF = (195000-92000) (1-0.25) + (25200 * 0.25)  

Tax shield OCF = 77250 + 6300

Tax shield OCF = 83550

Bottom Up OCF = Net Income + Dep

Bottom Up OCF = (77800 * (1-0.25) + 25200

Bottom Up OCF = 83550

A _____ chart shows individual figures at a specific time, or shows variations between components but not in relation to the whole.

Answers

Answer:

Bar chart

Explanation:

A bar chart can as well be regarded case a "bar graph", it can be explained as a chart/graph that gives the representation of categorical data as a

rectangular bars, where the height of the rectangular bars will equal to the data values they are representing. This bars could be horizontally or vertically plotted. It should be noted that bar chart shows individual figures at a specific time, or shows variations between components but not in relation to the whole.

What do you recommend that Penelope do with the request to form a company-sponsored affinity group, The Splendid Seniors

Answers

Incomplete question. The full question read;

Penelope is the vice president of HR at a large utility company, Power Energy. The company prides itself for its culturally diverse workforce, including a leadership team that is demographically and culturally diverse. One of the company initiatives for recognizing the rights of different groups are the company sponsorship of affinity groups. Power Energy affinity groups (also referred to as employee network groups) include the Latino Association. The Black Tech Workers Group, The Gay Workers Alliance, and the Lesbian Rainbows. The groups receive both encouragement and a modest financial budget from the company. Penelope is the official coordinator for these groups and has helped each group form a charter and organize meetings. Last week she received an email from five workers who have decided to form another affinity group, Power Energy employees. 60 years of age and older. Skeptical of the purposes of such a group, Penelope holds a meeting with the group who is attempting to form the new affinity group, “ The Splendid Seniors. ” During the meeting, members of the Splendid Seniors explain to Penelope that the company has a large number of workers aged 60 and over who collectively have special interests. Ron, the leader of the group, explains that many senior workers like to talk about retirement, as well as their concerns that Power Energy might soon cut their retirement and medical benefits. Ron also pointed out that if the company can sponsor affinity groups for Latinos, Blacks, Gays, and Lesbians, the company should be willing to support a group organizing itself by age. Penelope explains to the group that an affinity group is usually reserved for Equal Opportunity Commission (EEO) protected groups such as race, gender, and sexual orientation. She also asks why outside of talk about future retirement, workers over 60 have any particular concerns that would warrant a company-sponsored affinity group. Ron replied, “ I and the rest of the group are disappointed. We thought that Power Energy really believed in demographic diversity. ” Penelope replied that she would give the subject of an affinity group for people 60 and over some more thought.

What do you recommend that Penelope do with the request to form a company-sponsored affinity group, The Splendid Seniors?

Answer:

She should support the request.

Explanation:

Remember, all the group employees want is to be recognized as an affinity group having the same rights as other existing affinity groups. In fact, her refusal to accept the group's requests only reinstills in them the desire to get equal treatment.

Also, The Age Discrimination in Employment Act of 1967 is against discrimination in the workplace on the basis of age (especially for employees who are 40 years of age and above), such as preventing them from having similar privileges as others.

Therefore, Penelope should reconsider her decision, and then grant the workers over 60 right to form their own affinity group.

When the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a

Answers

Answer:

debit to the Allowance account.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).

IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globally.

According to the Generally Accepted Accounting Principles (GAAP), when the allowance method is used for bad debts, the entry to write off an individual account known to be uncollectible involves a debit to the allowance account.

Stock prices and stand-alone risk You invest $100,000 in 40 stocks, 20 bonds, and a certificate of deposit (CD). What kind of risk will you primarily be exposed to?
a. Portfolio risk
b. Stand-alone risk
Generally, investors would prefer to invest in assets that have: _________.
a. A high level of risk and low expected returns
b. A low level of risk and high expected returns

Answers

Answer and Explanation:

The risk that primarily be exposed is portfolio risk as the portfolio risk is the risk in which the risk is associated with the overall portfolio. On the other hand the stand alone risk is the risk that is associated with the single one only.

Since in the given situation, there is a different type of investment this represents that this is a portfolio risk

The investor always prefer for less level of risk and the high expected return in order to maximize the investment return with lesser risk level

Variance analysis is important to the management because:_____.
A. It helps management determine the reasons that actual costs varied from budgeted costs.
B. It helps management determine which department operated most efficiently.
C. It helps management determine the bottleneck of the production line.
D. All of the answers are correct.

Answers

Answer:

D. All of the answers are correct.

Explanation:

Given that Variance Analysis is a form of measuring and controlling methods used by a business management team to maintain and monitor the firm's planned cost and sales with the eventual outcome of cost spent and sales generated.

To achieve this, the process helps in determining the disparity between the actual costs of budgeted costs.

It also helps them to know which department is more productive and

It also helps to discover where the problems or difficulties exist in the production process

Hence, in this case, the correct answer is option D, All of the above. Because the option A to C satisfies the answer.

Samantha is interested in setting up her own accounting firm and wants to speciallze in the area ofaccounting that has experlenced the most
significant growth in recent years. Which area of accounting should she choose as her specialty?


Samantha should choose_______as her specialty.

Fill in the blank

Answers

Answer:

Samantha should choose Financial Accounting

Explanation:

Financial Accounting is the area of accounting that has experienced the most growth in recent years. This is because of the large size and complexity of financial markets, and the increasing importance that they have in the overall economy.

Financial Accounting specializes in the recording and analysis of financial transactions. Financial transactions are those that a firm uses to obtain funds in order to invest in new projects, pay off other obligations, or simply capitalize the firm.

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.08 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

Answers

Answer: 0.92

Explanation:

Beta is a measure of riskiness and Market beta is always 1.

The total portfolio therefore has a beta of 1.

Portfolio Beta is weighted average of the betas of the composite stocks.

The stocks are equally invested in so their weights are 0.5.

Assume the beta needed is x.

(0.5 * 1.08) + (0.5 * x) = 1

0.54 + 0.5x = 1

0.5x = 1 - 0.54

x = 0.46/0.5

= 0.92

Last year, total sales for your grocery store were $17,000 with returns of $457 and discounts of $700. The linear feet of shelving in the store totals 650. What are the sales less returns and discounts per linear foot of the store

Answers

Answer:24.37

Explanation:

24.37 just plug your formula and multiply the cash with store :)

PlZ HELP!!!
Gabbie needs to directly connect with her customers in order to educate them about the advantages of using her products. Face-to-face interaction with the customers isn’t possible. What is the next best medium?
A.
multilevel marketing
B.
telemarketing
C.
e-commerce
D.
direct sales
E.
franchising

Answers

Answer:

B.  telemarketing

Explanation:

In the telemarketing, the company or an individual is directly in contact with its customer with respect to the product over the phone call so that they could aware of the product

In this, the face to face interaction is not done

Therefore as per the given situation, the option B is correct as in this met the criteria.

Answer:

b) telemarketing

Explanation:

Exclusive distributorships are: a. covered under the Robinson-Patman Act. b. illegal per se. c. questioned when there is no interbrand competition. d. all of the above

Answers

Answer:

The correct option is c. EXCLUSIVE DISTRIBUTORSHIPS are questioned when there is no interbrand competition

Explanation:

The process in which a manufacturer of a goods or product decide and as well authorize that their would be only one distributor who will be the seller of their products or goods in a territory, a region or a Market is what is called EXCLUSIVE DISTRIBUTORSHIPS reason been that the manufacturer of such product want to know how good their products is in the territory and to get feedback from the customer about their products in order to take important action in a situation where their is lapses about their products.

Secondly in a situation where their is no INTERBRAND COMPETITION the EXCLUSIVE DISTRIBUTORSHIPS are been questioned reason been that INTERBRAND COMPETITION

occur when a manufacturer or producer of a products differentiate their products from other products that is sold in the same market where their products is been sold example of INTERBRAND COMPETITION is Mirinda drink versus Fanta

Therefore EXCLUSIVE DISTRIBUTORSHIPS are questioned when there is no interbrand competition.

Why would you want to limit your borrowing when making economic decisions ?

Answers

Answer:

so they can end up spending less on interest payments and credit card fees.

Explanation:

Guerilla Radio Broadcasting has a project available with the following cash flows : Year Cash Flow 0 −$15,700 1 6,400 2 7,700 3 4,500 4 4,100 What is the payback period?

Answers

Answer: 2.36 years

Explanation:

Payback period is the amount of time it will take to pay off the initial investment/ outlay which in this case is $15,700.

= Year before investment is paid + (Amount remaining/ Cashflow in year of Payback)

Add up the cashflows to find the year before payback;

= 6,400 + 7,700

= $14,100

Year before payback = 2

Amount remaining;

= 15,700 - 14,100

= $1,600

Payback period = 2 + (1,600/ 4,500)

= 2.36 years

C Co. reported a retained earnings balance of $200,000 at December 31, 2017. In September 2018, C determined that insurance premiums of $30,000 for the three-year period beginning January 1, 2017, had been paid and fully expensed in 2017. C has a 30% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2018 statement of retained earnings

Answers

Answer:

$214,000

Explanation:

The computation of the amount that report as adjusted opening retained earning is shown below:

Per year insurance premium is

= $30,000 ÷ 3 years

= $10,000

Now the beginning retained earning would be understated by

= ($30,000 - $10,000) - ($200,000 × 30%)

= $20,000 - $6,000

= $14,000

Now the amount adjusted is

= $200,000 + $14,000

= $214,000

Briefly explain why the data Brainard cites indicate that the Phillips curve is relatively flat.

Answers

Answer:

C. The flatter the Phillips​ curve, the less the inflation rate will​ rise, and the inflation rate has not risen much.

Explanation:

The following information is

There is a decline in the unemployment rate from 8.2% to 4.4%

The main inflation would be undershot 2 percent for 58 months

Based on the above information

The reason behind the Phillips curve be flat is that the lower rate of inflation would increased also the rate of inflation would not increased much as it should be increased

Therefore the option C is to be selected

Suppose people with 15 years of schooling average earnings of $60,000 while people with 16 years of education average $66,000.
a. What is the annual rate of return associated with the 16th year of education?
b. It is typically thought that this type of calculation of the returns to schooling is biased, because it doesn't take into account innate ability or innate motivation. If this criticism is true, is the actual return to the 16th year of schooling more than or less than your answer in part (a)?

Answers

Answer:

a. The annual rate of return associated with the 16th year of education is:

9.1%

b. The actual return of return to the 16th year of schooling is more than 9.1%.

Explanation:

a) Data and Calculations:

Average income for people with 15 years of schooling = $60,000

Average income for people with 16 years of schooling = $66,000

Income associated with the 16th year of education = $6,000 (66,000 - 60,000)

Annual rate of return with the 16th year of education = $6,000/$66,000 * 100 = 9.1%

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