Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. tawhiri equipment companys adjusted total assets a

Tawhiri Equipment Companys adjusted total assets are valued as $125 Million. The total debt value...

80.2K

Verified Solution

Question

Finance

Tawhiri Equipment Companys adjusted total assets are valued as $125 Million. The total debt value of the company is $25 million. Net income recorded in the previous year is $5 million. Interest rate earned on fixed income securities is 8%. Due to high risk nature of the company, the figure 1.5 is used to adjust for risk. The risk free interest rate is 3% per year. With Anglo-Saxon method, calculate the equity value of this company.

a. $ 155.2 mil

b. $ 128.9 mil

c. $ 116.7 mil

d. $ 105.4 mil

e. $ 95 mil

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

andard 6 1 Which statement can be represented by 20 dollars O Joe deposited 20...

Algebra
Q

CHART OF ACCOUNTSBeartooth Co.General LedgerASSETS110Cash120Accounts Receivable125Notes Receivable130Inventory...CHART OF ACCOUNTSBeartooth Co.General LedgerASSETS110Cash120Accounts Receivable125Notes Receivable130Inventory131Estimated Returns...

Accounting
Q

Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1...

Finance
Q

Consider three point charges at the corners of an equilateral triangle, its base sitting on the...

Physics
Q

Where in the industry value chain does Facebook compete, and in which product markets? Do they operate...

General Management
Q

Discuss the development of opera during the Baroque Era. This is a music 101 class question....

General Management
Q

A ball floats on the surface of water in a container exposed to the atmosphere...

Physics
Q

Captain Argos is impressed by his flyingspeed over the ocean. In miles per hour,he's calculated...

Basic Math
Q

Graph the linear function using the slope and y intercept y x 3 10

Algebra
Q

E9-2B. Budget Preparation Reeves Company is preparing its master budget for July. Use the given...

Accounting
Q

On September 1, 2016, the Ichabod Crane Equipment, Inc. sold equipment to Bob Builder Corporation...

Accounting
Q

This is ferderal taxation Prepare the 2017 Tax Return for Jack and Susie. (The forms...

Accounting