Three piggies enterprises has no debt. its current total value is $74 million. assume debt proceeds are used to repurchase equity. ignoring taxes, what will the company’s value be if it sells $34 million in debt? (do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e. g., 1,234,567. round your answer to the nearest whole number, e. g., 32.) value of the firm $ suppose now that the company’s tax rate is 35 percent. what will its overall value be if it sells $34 million in debt? (do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e. g., 1,234,567. round your answer to the nearest whole number, e. g., 32.) value of the firm $

True or false: on january 1, year one, the epstein corporation buys a plot of land with a four-story office building. the company believes the building is worth $1.9 million and has an estimated life of twenty years (with no anticipated residual value). the straight-line method is used. the land has an assessed value of $100,000. because the seller was interested in a quick sale, epstein was able to buy this land and building for $1.7 million. depreciation expense to be recognized in year one is $80,750.

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))

The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.