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

Author Question: Discrete Discs Inc. manufactures hard disk drives for personal computers. Discrete is an all equity ... (Read 72 times)

ETearle

  • Hero Member
  • *****
  • Posts: 580
on: Apr 25, 2021
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
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 ETearle on Apr 25, 2021

cloudre37

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


ETearle

  • Member
  • Posts: 580
Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

LVPMS

  • Member
  • Posts: 323
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

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.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Off-Center Disk Off-Center Disk
The offspring of the microchip—from computers to cell phones—offer access to vast information ... The offspring of the microchip—from computers to cell phones—offer access to vast information ...
The growth in demand for oil in China is driven by the growth in demand for personal transport The growth in demand for oil in China is driven by the growth in demand for personal transport
Investment in Computers as a Percentage of GDP, 1982–2009 Investment in Computers as a Percentage of GDP, 1982–2009
Personal Finance (5th Edition) (The Personal Series in Finance) Personal Finance (5th Edition) (The Personal Series in Finance)
Discrete random variables- Probability Distribution Function Discrete random variables- Probability Distribution Function
Video: Tuberculosis Testing

For a complete list of videos, visit our video library