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 28 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
Gracias!

Hdosisshsbshs

  • Member
  • Posts: 315
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Animal Cell Animal Cell
Prokaryotic Cell Transcription Prokaryotic Cell Transcription
Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent
How many pounds of yeast must the manufacturer start with to obtain 550 lb at the end of 12 h? How many pounds of yeast must the manufacturer start with to obtain 550 lb at the end of 12 h?
Age-standardized disability-adjusted life year (DALY) rates from hepatitis B by country (per 100 000 ... Age-standardized disability-adjusted life year (DALY) rates from hepatitis B by country (per 100 000 ...
Schematic drawing of a rod cell Schematic drawing of a rod cell
Video: Types of Burns

For a complete list of videos, visit our video library