Divided Airlines is currently an unlevered firm. At the end of this year and all subsequent years, the company expects to generate FCF of $200 million. All earnings after tax are paid out as dividends. The firm is considering a capital restructuring and borrowed $200 million of debt. To pay off the debt, firm will pay $8 million in interest every year for 15 years. Its cost of debt is 4%. Unlevered firms in the same industry have cost of equity of 12%.
1. In the perfect M&M's world, what is Dividend Airlines's value after restructuring?2. In the perfect M&M's world, what is Dividend Airlines' cost of equity after restructuring?3. Suppose now we know the corporate tax rate is 21%. What is the new value of Dividend Airlines after restructuring when taxes are being considered?

land, a building and equipment are acquired for a lump sum of $ 1,000,000. the market values of the land, building and equipment are $ 300,000, $ 800,000 and $ 300,000, respectively. what is the cost assigned to the equipment? (do not round any intermediary calculations, and round your final answer to the nearest dollar.)

Which of the following is usually not one of the top considerations in choosing a country for a facility location? a. availability of labor and labor productivityb. attitude of governmental unitsc. location of marketsd. zoning regulationse. exchange rates

The direct labor budget of yuvwell corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours: 1st quarter 2nd quarter 3rd quarter 4th quarterbudgeted direct labor-hours 11,200 9,800 10,100 10,900the company uses direct labor-hours as its overhead allocation base. the variable portion of its predetermined manufacturing overhead rate is $6.00 per direct labor-hour and its total fixed manufacturing overhead is $80,000 per quarter. the only noncash item included in fixed manufacturing overhead is depreciation, which is $20,000 per quarter.required: 1. prepare the company’s manufacturing overhead budget for the upcoming fiscal year.2. compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.