You invest in a business that you expect will earn profit (in thousands of dollars) of $12 by the end the year, $17 next year, $25 the third year, and $30 the 4th year. Other investments of equal risk earn 5%. How much is this business worth today?

a. $69.36
b. $90.91
c. $64.82
d. $84.00
e. None of the above

Goods and services that can be used for the same purpose are and goods and services that are used together are

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false

Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc