This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Orange Inc., a cell-phone manufacturer, is an all equity firm. At the end of the current year, the ... (Read 27 times)

Kthamas

  • Hero Member
  • *****
  • Posts: 546
on: Apr 25, 2021
Orange Inc., a cell-phone manufacturer, is an all equity firm. At the end of the current year, the CFO expects EBIT to be $100 and the same earnings are expected annually in perpetuity. The company is not growing so CAPEX and investments in net working capital are zero. The cost of equity for Orange is 10%. Orange's prime competitor is Verge Inc., manufacturer of the Blueberry smartphone. Verge is identical to Orange Inc. in every respect except that Verge has $130.44 of long term debt outstanding. What is the value of Verge Inc.? The corporate tax rate is 40%.
◦ $500
◦ $600
◦ $630
◦ $652
◦ $1,000
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Kthamas on Apr 25, 2021

Viet Thy

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 59% of students answer this correctly


Kthamas

  • Member
  • Posts: 546
Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

animal cell animal cell
A Prokaryotic Cell A Prokaryotic Cell
cell cell
Average Number of Days per Year with Thunderstorms Average Number of Days per Year with Thunderstorms
Parts of a Cell Parts of a Cell
What is the current in Figure 16-1(b) if the diode is made of silicon and the polarity of the ... What is the current in Figure 16-1(b) if the diode is made of silicon and the polarity of the ...
Video: Introduction to Human Immunodeficiency Virus (HIV)

For a complete list of videos, visit our video library