North Corp. EBIT is $200. It has a debt-equity ratio of 25% and a WACC of 16%. Debt interest is 12%. Without taxes, what is the value of the firm?

Value of the firm = 25000

Explanation:

Use the below formula to find the value of firm.

Degree of Financial Leverage = EBIT / ( EBIT​ - Interest)

Degree of Financial Leverage = 0.25

0.25={200/ {200-Interests}

Interests amount = - 600

Interest amount = debt × Cost of Debts

Debt amount = Interest amount / Cost of Debt

Debt amount = - 600 / 0.12.

Debt amount = -5000

Now find the debt equity ratio:

Debt-equity ratio =  debt / equity

Given Debt amount = 5000

0.25= 5000 / Equity

Equity =5 000 /0.25

The value of Equity = 20,000

Now, the value of the firm = Equity amount + Debt amount

The value of the firm = 20000 + 5000

The value of the firm = 25000

answer:

simon wants to open a savings account. which of the following documents will the bank request for identification details?

b.   passport

step-by-step explanation:

explanation:

###

#thisisboring.