Business, 15.04.2020 03:18, jahnoibenjamin

ChocolateCookie Inc is a private firm. You collected information about its competitors and calculated the weighted average of the unlevered betas of competitors to be 1.08. You also estimated the value of equity of ChocolateCookie to be $50 million, and the only debt the company has is a loan from the bank of $10 million. Tax rate is 21%. What is your estimate of the ChocolateCookie's equity beta?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:40, Dailyn

Eileen's elegant earrings produces pairs of earrings for its mail order catalogue business. each pair is shipped in a separate box. she rents a small room for $150 a week in the downtown business district that serves as her factory. she can hire workers for $275 a week. there are no implicit costs. what is the marginal product of the second worker?

Answers: 3

continue

Business, 22.06.2019 10:50, jadeafrias

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.

Answers: 3

continue

Business, 22.06.2019 13:40, allytrujillo20oy0dib

Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?

Answers: 1

continue

Business, 22.06.2019 20:30, Arealbot

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game. expert answer

Answers: 3

continue

Do you know the correct answer?

ChocolateCookie Inc is a private firm. You collected information about its competitors and calculate...