A firm expects its EBIT to be $171,000 every year, in perpetuity. The company is currently unlevered with a cost of equity of 19%. It faces a tax rate of 23%. The firm plans to borrow $165,000 and use the proceeds to repurchase shares. If the firm's cost of borrowing is 12%, what is its WACC after the recapitalization
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Business, 22.06.2019 05:00
At which stage would you introduce your product to the market at large? a. development stage b. market testing stage c. commercialization stage d. ideation stage
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Business, 22.06.2019 20:10
As the inventor of hypertension medication, onesure pharmaceuticals (osp) inc. was able to reap the benefits of economies of scale due to a large consumer demand for the drug. even when competitors later developed similar drugs after the expiry of osp's patents, regular users did not want to switch because they were concerned about possible side effects. which of the following benefits does this scenario best illustrate? a. first-mover advantages b. social benefits c. network externalities d. fringe benefits
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Business, 22.06.2019 22:20
What type of negotiating strategy requires the supplier to open its books to the purchasers? a. competitive biddingb. cost-based price modelc. price-based modeld. market-based price modele. transparent negotiations
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Business, 22.06.2019 23:00
The quinoa seed is in high demand in wealthier countries such as the u.s. and japan. approximately 97% of all quinoa production comes from small farmers in bolivia and peru who farm at high elevations—8,000 feet or higher. the seed is considered highly nutritious. mostly grown and harvested in bolivia and peru, and sold to markets in other countries, the seed is now considered an important for these nations. the governments of bolivia and peru are hopeful that this product will increase the quality of life of their farmers.
Answers: 3
A firm expects its EBIT to be $171,000 every year, in perpetuity. The company is currently unlevered...
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