Giving brainliest for CORRECT awnser.

DAR Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P

Eddi Din [679]

Answer:

a) Share price of company is $28.20.

b) So value of unlevered firm is $4.512 million.

Explanation:

a.

Share price = Value of debt / (160,000 - 110,000)

= $1,410,000 / 50,000

= $28.20

Share price of company is $28.20.

b.

VAlue of all equity firm = Number of share outstanding × Price per share

= 160,000 × $28.20

= $4.512 million

Value of levered firm is $4.512 million.

Since tax rate is zero, so value of levered firm equal to value of unlevered firm.

So value of unlevered firm is $4.512 million.

6 0

2 years ago

Of fifo or lifo, which method would produce the more favorable cash flow? fifo, because of it produces lower income tax expense

quester [9]

FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.

4 0

2 years ago

Blythe Corp. is a defendant in a lawsuit. Blythe's attorneys believe it is reasonably possible that the suit will require Blythe

8090 [49]

Answer:

The entry is not required because the outcome is reasonably possible, not certain or probable. So IAS 37 says that the liability must not be recognized as the outcome is not reasonably certain or probable.

Explanation:

The liability must be included in the financial statement only if the outcome is certain or probable. In this scenario, the outcome is reasonably possible but neither certain nor probable in this situation. So the entry in the financial statement is not required. If the liability is of a huge amount then IAS 37 says that their must be a disclosure in the financial statement notes about the lawsuit.

7 0

3 years ago

Read 2 more answers

What is included in a speaking outline that is not included in a working outline?

aivan3 [116]

Idk never heard of this before

3 0

3 years ago

consider a firm that produces units of output using capital and labor. due to changes in market conditions, it has decided to re

mote1985 [20]

A firm that produces units of output using capital and labor to determine its total costs will decline by doing so, the firm will evaluate its: Marginal cost Function .

Option C is correct .

Marginal cost is the change in cost due to producing on excess unit of affair. To determine how big its total cost decline, the establishment will estimate its marginal cost function.

<h3>Marginal cost function :</h3>

Marginal cost represents the gradual costs incurred when producing fresh units of a good or service. It's figured by taking the total change in the cost of producing further goods and dividing that by the change in the number of goods produced.Marginal cost is calculated as the aggregate charges needed to manufacture one fresh good. thus, it can be measured by changes to what charges are incurred for any given fresh unit. Marginal Cost = Change in Total Charges ÷ Change in volume of Units Produced.

Question is incomplete ,missing option is given below :

Consider a firm that produces units of output using capital and labor. Due to changes in market conditions, it has decided to reduce its daily output from 5 units to 4 units. To determine how much its total costs will decline by doing so, the firm will evaluate its: Group of answer choices

A.marginal product function

B.average product function

C.marginal cost function

D.average total cost function

E.average variable cost function

Learn more about Marginal cost function :

brainly.com/question/17481520

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3 0

8 months ago