Charisma, Inc., has debt outstanding with a face value of $6.2 million. The value of the firm if it were entirely financed by equity would be $29.9 million. The company also has 425,000 shares of stock outstanding that sell at a price of $58 per share. The corporate tax rate is 22 percent. What is the decrease in the value of the company due to expected bankruptcy costs
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Charisma, Inc., has debt outstanding with a face value of $6.2 million. The value of the firm if it were entirely financed by equity would ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Stosch Company's balance sheet reported assets of $57,000, liabilities of $18,000 and common stock of $15,000 as of December 31, Year 1.
Answers (1)
When the market rate is 10%, a company issues $60,000 of 12%, 10-year bonds dated January 1, 2017, that mature on December 31, 2026, and pay interest semiannually.
Answers (1)
Ben schumpert decides his company will start exporting and he wants to start at the most basic level. what action should ben take to meet his objectives?
Answers (1)
Ricardo's Mexican Restaurant incurred salaries expense of $62,000 for 2018. The payroll expense includes employer FICA tax, in addition to state unemployment fax and federal unemployment tax.
Answers (1)
What seems to be the overall result of government laws on wages?
Answers (1)
New Questions in Business
Stock in 1999 your parents bought $3000 worth of stock. in 2000 the value of the stock jumped to $6000. however since that time, the stock has decreased in value by 6.5% per year.
Answers (1)
True or False: When a country is too small to affect the world price, allowing free trade will have a non-negative effect on total surplus in that country, regardless of whether it imports or exports as a result of international trade. True False
Answers (1)
Assume Canada can either produce three bushels of barley or six bushels of hay in a set period of time, and China can produce either two bushels of barley or three bushels of hay in a set period of time.
Answers (1)
The financial statements for Harold Corporation contained the following information: Accounts receivable $ 5,000 Sales revenue 75,000 Cash 15,000 Salaries and wages expense 20,000 Rent expense 10,000 How much was Harold's net income?
Answers (1)
Nastasha has a gross income of $66,429. she can make adjustments of $14,490 for business losses, $3,584 for business expenses, and $4,813 for contributions to her retirement plan. what is nastasha's adjusted gross income? a. $109,971 b. $22,887 c.
Answers (1)