Gail's dance studio is currently an all equity firm that has 80,000 shares of stock outstanding with a market price of $42 a share. the current cost of equity is 12% and the tax rate is 34%. gail is considering adding $1 million of debt with a coupon rate of 8% to her capital structure. the debt will be sold at par value.

what is the levered value of the equity

What happens when a bank is required to hold more money in reserve?

Throne technical university is looking for three people to work in its plant-biology laboratory. the hiring manager is finding that the most suitable job candidates live in other countries and are not willing to move to the city where the university is located. which situation is the university facing? a. lack of flexible workforce b. surpluses in labor talent c. an appearance of quota systems d. deficits in minimum wage demands

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?