Calculate the market value of lotle group, a firm with total assets of $80 million and $30 million of perpetual debt in its capital structure. the firm’s cost of equity is 14% and the cost of debt is 9%. lotle expects annual, perpetual net operating income (ebit) of $9 million and a marginal tax rate of 40%.

The market value of Lotle Group is $ 83.53.

Explanation:

The market value of Lotle Group can be calculated by dividing the perpetual net operating income (EBIT) with company WAAC. Detail calculation is given below.

MW = EBIT/WAAC = $ 9/10.775% = $ 83.53

WAAC Calculation

WAAC = 14%*(50/80)% + 9%(0.60)(30/80)

WAAC = 8.75% + 2.025% = 10.775%

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

i would say their habit of breaking down.