Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. questions have been verified and are correct pleas

Questions have been verified and are correct please just answer with your answer and i...

60.1K

Verified Solution

Question

Finance

Questions have been verified and are correct please just answer with your answer and i will check into it, thank you.

31.)

There are two firms: Firm U and Firm L. Both firms have $100M total assets and $15M EBIT (earnings before interest and taxes). Firm U is an unleveraged firm without debt. Firm L is a leveraged firm with 50% of debt and 50% of common equity. The pre-tax cost of debt for Firm L is 10%. Both firms have 30% corporate tax rate. Calculate the return on equity (ROE) for firm U

10.0%

11.5%

14.0%

16.2%

32.)

Based on the information from Question 31, whats the return on equity (ROE) for firm L

10.0%

11.5%

14.0%

16.2%

33.)

Based on the information from Question 31, whats the return on equity (ROE) for firm L

10.0%

11.5%

14.0%

16.2%

34.)

Based on the information from Question 31, whats the difference of the total dollars paid to all investors in Firm L and Firm U

$1.5 million

$3.0 million

$4.5 million

$8.0 million

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

BCl3is a monomer that is a gas at room temperature while the analogous Al compound is...

Chemistry
Q

Name 3 means of communicating that Hard of hearing or deaf people might use? Name 3 types...

Psychology
Q

A double acting cylinder is to travel out when an electrical pushbutton is actuated and remains...

Electrical Engineering
Q

A hypodermic needle is 4.0 cm long and has an inner diameter of 0.25 mm. Assume...

Physics
Q

A window has dimensions of 1 05 m by 2 4 m and is made...

Physics
Q

Question 5Tof 23 Step 1 of 1Use the basic proportionnecessary.P100=to solve the following problem for...

Basic Math
Q

Subtract and reduce if possible 4 11p 7 2p

Algebra
Q

Explain Net Income and COGS data that you will find in a typical...

Accounting
Q

please help, thanksss!!!! Exercise 10-5 (Algo) Determine the omount of dividends on...

Accounting
Q

Chris and Stefani Watanabe live with their two boys at 1400 Victoria Lane, Riverside, CA...

Accounting
Q

balances. \table[[,$15,600,Notes payable,$42,000

Accounting
Q

= Homework: MA... Question 5, TIM4-5 (simi... Part 10 of 10 HW Score: 87.95%, 5.28...

Accounting