This topic contains a solution. Click here to go to the answer

Author Question: Discrete Discs Inc. manufactures hard disk drives for personal computers. Discrete is an all equity ... (Read 51 times)

ETearle

  • Hero Member
  • *****
  • Posts: 580
Discrete Discs Inc. manufactures hard disk drives for personal computers. Discrete is an all equity firm. At the end of the current year, the CFO expects EBIT to be $10M 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 Discrete is 8%. Solid State Storage Inc. is identical to Discrete except that it has $3M of long term debt outstanding. What is the value of Solid State's equity? The corporate tax rate is 30%.
◦ $84.5M
◦ $85.4M
◦ $87.5M
◦ $88.4M
◦ $122.9M


Related Topics

Need homework help now?

Ask unlimited questions for free

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

cloudre37

  • Sr. Member
  • ****
  • Posts: 332
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 45% of students answer this correctly




ETearle

  • Member
  • Posts: 580
Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


vickybb89

  • Member
  • Posts: 347
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

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

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

For a complete list of videos, visit our video library