Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. edwards construction currently has debt outstandin

Edwards Construction currently has debt outstanding with a market value of $290,000 and a cost...

60.1K

Verified Solution

Question

Finance

image

Edwards Construction currently has debt outstanding with a market value of $290,000 and a cost of 7 percent. The company has an EBIT of $20,300 that is expected to continue in perpetuity. Assume there are no taxes a. What is the value of the company's equity and the debt-to-value ratio? (Do not round intermediate calculations Leave no cells blank - be certain to enter "O" wherever required. Round your debt-to-value answer to 3 decimal places, e.g., 32.161.) Equity value Debt-to- value b. What is the equity value and the debt-to-value ratio if the company's growth rate is 2 percent? (Do not round intermediate calculations. Round your equity value to 2 decimal places, e.g., 32.16, and round your debt-to-value answer to 3 decimal places, e.g., 32.161.) 298120 Equity value Debt-to- value .97 c. What is the equity value and the debt-to-value ratio if the company's growth rate is 4 percent? (Do not round intermediate calculations. Round your equity value to 2 decimal places, e.g., 32.16, and round your debt-to-value answer to 3 decimal places, e.g., 32.161.) s 317067 Equity value Debt-to- value .91

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

If the variation in the residuals is less than the variation in the response variable...

Statistics
Q

you invest 2500 in your child's college fund at the end of each year for the...

Finance
Q

Problem 2. You pay 5$ /round (nonrefundable) to play the game of rolling a pair of fair...

Statistics
Q

One way of achieving an IPSP is to increase permeability to Cl-. By what other mechanism can...

Chemistry
Q

Chromium metal can be electroplated from an acidic solution of (CrO4)-2 a.      Write the half reaction b.     Determine...

Chemistry
Q

The Cloud Effect\" Please respond to the following 1. Many firms are relying on cloud computing,...

Economics
Q

A dolphin jumped from 5 feet below the surface of the sea. Jane wrote -5...

Basic Math
Q

tors are testing a new antidepressant A group of patients all with similar characteristics take...

Statistics
Q

start solving from 1b In the last picture i provide template for the your...

Accounting
Q

uestion 16 2 points Save An A company began the year with retained earnings of...

Accounting
Q

The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry $...

Accounting
Q

Benson City had the following transactions involving resource outflows from its general fund for the...

Accounting