Tomkat Corp. has only a single asset. This asset generates operating cash flow of $300,000 per year, in perpetuity. Tomkat also has a single liability, which is a perpetual bond (the maturity date is infinitely far in the future) that has a face value of $1 million and that pays coupon interest at a rate of 6% once per year. The appropriate discount rate for the asset is 10%, while that for the bond is 5% per year.
Required:
What is the value of Tomkat’s equity?
Answers: 1
Business, 21.06.2019 21:30, jenny8460
Which of the following statements is true regarding the definition of a fund? a fund is a fiscal entity which is designed to provide reporting that demonstrates conformance with finance-related legal and contractual provisions separately from gaap reporting. a fund exists to assist in carrying on activities and attaining objectives where there are no specific rules or restrictions. a fund is an accounting entity which is designed to enable reporting in conformity with gaap without being restricted by legal or contractual provisions. a fund is a mechanism developed to provide accounting for revenues and expenditures that are subject to certain restrictions separate from revenues and expenditures that are not subject to restrictions.
Answers: 1
Business, 22.06.2019 11:30, levy72
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Business, 22.06.2019 11:30, iBrain
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Business, 22.06.2019 14:50, kianofou853
Ann chovies, owner of the perfect pasta pizza parlor, uses 20 pounds of pepperoni each day in preparing pizzas. order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. if she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?
Answers: 3
Tomkat Corp. has only a single asset. This asset generates operating cash flow of $300,000 per year,...
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