21megoplin
24.04.2020 •
Business
Pompeii Pizza Club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt-equity ratio of 30 percent and makes interest payments of $43,000 at the end of each year. The cost of the firmâs levered equity is 16 percent. Each store estimates that annual sales will be $1.29 million; annual cost of goods sold will be $750,000; and annual general and administrative costs will be $410,000. These cash flows are expected to remain the same forever. The corporate tax rate is 21 percent.
Required:
a. Use the flow to equity approach to determine the value of the companyâs equity. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89)b. What is the total value of the company? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89)
Solved
Show answers
More tips
- F Family and Home When and how to start introducing solid foods to your baby?...
- C Computers and Internet Keep Your Mouse Pad Clean: The Right Way to Clean It?...
- F Food and Cooking Homemade French Fries: The Ultimate Guide...
- F Food and Cooking Red Caviar: How to Choose the Best?...
- C Computers and Internet Clearing Cache: How to Speed Up Your Browser...
- S Style and Beauty How are artificial nails removed?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
- F Food and Cooking Everything You Need to Know About Pasta...
Answers on questions: Business
- B Business does any one know about europa2433? bc he keeps deleting every ones answers/questions on and every one needs to know, but im tryna track him down so that i can report him pl answer...
- B Business Portside watercraft uses a job order costing system. during one month portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000...
- B Business March 1, 201, dorchester company s beginning work in process inventory had 7,000 units. this is its only production department. beginning wip units were 50% complete as to conversion...
- B Business Ornamental sculptures mfg. manufactures garden sculptures. each sculpture requires 8 pounds of direct materials at a cost of $4 per pound and 0.4 direct labor hours at a rate of $18...
- B Business Which of the following quotes from heart of darkness contains sarcasm? a. marlow calls colonialism a flabby, pretending, weak-eyed devil of rapacious and pitiless folly. b. marlow...
- B Business Blackwell automotive’s balance sheet at the end of its most recent fiscal year shows the following information: blackwell automotive balance sheet as of march 31, 2013 assets liabilities...
- B Business Jessica simpson sets up shop to sell “buffalo wings.” she observes that if the price drops from $3.50 per order to $2.50 per order, her daily sales rise from 300 to 500 orders. a....
- B Business Suppose you inherited $275,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years? $28,532 $29,959 $31,457 $33,030...
- B Business Assume that the GSI report on the septic system was complete and accurate, except that it misplaced the location of the sewage and water disposal system by two feet. GSI breach the...
- B Business TB Problem Qu. 6-264 Nelter Corporation, which has only one ... Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of...
Ответ:
B.)
Explanation: