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

Author Question: If a firm has an unlevered beta equal to 1.0 a debt-equity ratio of .50 and a tax rate of .30, ... (Read 57 times)

Jramos095

  • Hero Member
  • *****
  • Posts: 528
on: Jul 11, 2018
If a firm has an unlevered beta equal to 1.0 a debt-equity ratio of .50 and a tax rate of .30, calculate the value of the firm's levered beta.
 
  A) 0.65
  B) 1.00
  C) 1.35
  D) 1.73

Question 2

In a surety arrangement, the party who benefits from the bond if the bonded party fails to perform is the
 
  A) principal.
  B) obligee.
  C) fidelity.
  D) surety.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

katkat_flores

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 11, 2018
Answer to Question 1

C
Explanation: C) L = (1+(D/E)(1-t)) U
= (1+(.50)(1-.30)1 = 1.35.

Answer to Question 2

A) principal.
B) obligee.
C) fidelity.
D) surety.
Answer: B


Jramos095

  • Member
  • Posts: 528
Reply 2 on: Jul 11, 2018
Wow, this really help

nanny

  • Member
  • Posts: 313
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

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?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Failure of the Equal Rights Amendment, 1972–1982 Failure of the Equal Rights Amendment, 1972–1982
Fluidization - Reaction Rate Chart Fluidization - Reaction Rate Chart
Finding the angle from a ratio (Part 1) Finding the angle from a ratio (Part 1)
Annotation of a DNA sequence containing part of the human beta-globin gene Annotation of a DNA sequence containing part of the human beta-globin gene
the Beta-globin gene subfamily on chromosome 11 the Beta-globin gene subfamily on chromosome 11
Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ... Sonja is paid $42.50 per hour as a veterinarian. She is paid 1 times the regular rate for all ...
Video: Automated external defibrillator (AED)

For a complete list of videos, visit our video library