![Business](/tpl/images/cats/ekonomika.png)
Business, 01.10.2019 03:10, mahmudabiazp3ekot
Steinberg corporation and dietrich corporation are identical firms except that dietrich is more levered. both companies will remain in business for one more year. the companies' economists agree that the probability of the continuation of the current expansion is 70 percent for the next year, and the probability of a recession is 30 percent. if the expansion continues, each firm will generate earnings before interest and taxes (ebit) of $3.0 million. if a recession occurs, each firm will generate earnings before interest and taxes (ebit) of $1.4 million. steinberg's debt obligation requires the firm to pay $930,000 at the end of the year. dietrich's debt obligation requires the firm to pay $1.5 million at the end of the year. neither firm pays taxes. assume a discount rate of 12 percent. a-1. what is the value today of steinberg's debt and equity? (enter your answers in dollars, not millions of dollars, i. e. 1,234,567. do not round intermediate calculations and round your answers to the nearest whole dollar amount. (e. g., 32)) steinberg's equity value $ debt value $a-2. what is the value today of dietrich's debt and equity? (enter your answers in dollars, not millions of dollars, i. e. 1,234,567. do not round intermediate calculations and round your answers to the nearest whole dollar amount. (e. g., 32)) dietrich's equity value $ debt value $b. steinberg’s ceo recently stated that steinberg’s value should be higher than dietrich’s because the firm has less debt and therefore less bankruptcy risk. do you agree or disagree with this statement? agreedisagree
![answer](/tpl/images/cats/otvet.png)
Answers: 3
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 16:50, cutebab4786
Slow ride corp. is evaluating a project with the following cash flows: year cash flow 0 –$12,000 1 5,800 2 6,500 3 6,200 4 5,100 5 –4,300 the company uses a 11 percent discount rate and an 8 percent reinvestment rate on all of its projects. calculate the mirr of the project using all three methods using these interest rates.
Answers: 2
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 17:30, brittanyjacob8
Kevin and jenny, who are both working full-time, have three children all under the age of ten. the two youngest children, who are three and five years old, attended eastside pre-school for a total cost of $3,000. ervin, who is nine, attended big kid daycare after school at a cost of $2,000. jenny has earned income of $15,000 and kevin earns $14,000. what amount of childcare expenses should be used to determine the child and dependent care credit?
Answers: 3
Do you know the correct answer?
Steinberg corporation and dietrich corporation are identical firms except that dietrich is more leve...
Questions in other subjects:
![Konu](/tpl/images/cats/mat.png)
Mathematics, 20.05.2021 14:00
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/istoriya.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 20.05.2021 14:00
![Konu](/tpl/images/cats/en.png)
English, 20.05.2021 14:00
![Konu](/tpl/images/cats/istoriya.png)
![Konu](/tpl/images/cats/istoriya.png)
History, 20.05.2021 14:00
![Konu](/tpl/images/cats/mat.png)
Mathematics, 20.05.2021 14:00
![Konu](/tpl/images/cats/fizika.png)
Physics, 20.05.2021 14:00