Answer:
The correct answer is $1,836,742.42.
Explanation:
According to the scenario, the given data are as follows:
EBIT = $373,000
Cost of equity = 13.2%
Tax rate = 35%
So, we can calculate the unlevered value of the firm by using following formula:
Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY
By putting the value, we get
Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%
= $373,000 × 0.65 ÷ 0.132
= $242,450 ÷ 0.132
= $1,836,742.42
<span>When determining the value of raw land, there is a relatively fixed amount of supply; therefore, the value of land is primarily determined by demand?
Because land isn't something we can just add in to the world, there is a fixed amount of supply available to us as a resource. When the supply becomes scarce, it is easy for the value of land to go up because if demand is high and there is a low amount the price can be higher since there is less competition of the same. </span>
P(t) = (0.83)t^(5/4)
<span>2096 - 2015 = 81 </span>
<span>81 ^ (5/4) = 243 </span>
<span>243 × 0.83 = 201.69 </span>
<span>Population in 2096 expected to be 202 million.</span>
Answer:
The money should be invested in bank = $137,639.05
Explanation:
Given annually withdrawal money (annuity ) = $12000
Number of years (n ) = 20 years
Interest rate = 6 percent.
Since a person withdraw money annually for next 20 years with 6 percent interest rate. Now we have to calculate the amount that have been invested in the account today. So below is the calculation for invested money.
![\text{Present value of annuity} = \frac{Annuity [1-(1 + r)^{-n}]}{rate} \\= \frac{12000 [1-(1 + 0.06)^{-20}]}{0.06} \\=12000 \times 11.46992122 \\=137,639.05](https://tex.z-dn.net/?f=%5Ctext%7BPresent%20value%20of%20annuity%7D%20%3D%20%5Cfrac%7BAnnuity%20%5B1-%281%20%2B%20r%29%5E%7B-n%7D%5D%7D%7Brate%7D%20%5C%5C%3D%20%5Cfrac%7B12000%20%5B1-%281%20%2B%200.06%29%5E%7B-20%7D%5D%7D%7B0.06%7D%20%5C%5C%3D12000%20%5Ctimes%2011.46992122%20%5C%5C%3D137%2C639.05)
