1. According to the information for two firms (levered and unlevered firms) given below, compute the value of the levered firm including the values of the tax-shield benefits of the
debt and bankruptcy-agency costs. Assuming zero growth and 100% dividend payout,
permanent debt, so treated as a perpetuity. (30p)
NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.
Debt amount for levered firm
:
$50.000
NOI for each firm
:
$40.000
Interest rate for the debt
:
10%
Stock market return
12%
Tax rate for each firm
20%
5%
Treasury bill rate
Present value for bankruptcy-agency cost
Beta (B) coefficient for unlevered firm
$38.000
:
0.9

Employees of dti, inc. worked 1,600 direct labor hours in january and 1,000 direct labor hours in february. dti expects to use 18,000 direct labor hours during the year, and expects to incur $22,500 of worker’s compensation insurance cost for the year. the cash payment for this cost will be paid in april. how much insurance premium should be allocated to products made in january and february?

Larissa has also provided the following information. during the year, the company raised $36 million in new long-term debt and retired $20.52 million in long-term debt. the company also sold $22 million in new stock and repurchased $32.4 million. the company purchased $54 million in fixed assets, and sold $6,107,400 in fixed assets. larissa has asked dan to prepare the financial statement of cash flows and the accounting statement of cash flows. she has also asked you to answer the following questions: 1. how would you describe east coast yachts' cash flows? 2. which cash flows statement more accurately describes the cash flows at the company? 3. in light of your previous answers, comment on larissa's expansion plans.

Fill in the missing words to correctly complete each sentence about analyzing a job posting. when reviewing a job posting, it’s important to check theto determine whether it’s worth your time to apply. if the post has been up for a while or it’s already closed, move on to the next position. if it’s still available, take note of when it closes so you’ll know when you mayfrom the company in regard to an interview.