Calculate bright star equity fair value and wacc, Macroeconomics

After the fall of the king, a tax rate of 20% has been introduced in the Frog Islands Republic. The value of Sun corporation is now 100.000€. Bright Star Co. debt has no changed. The required rate of return to Sun Co. continues being 7.5% and the risk free interest rate 5%.

Questions:

1) Why the value of the Sun Co. is now 100.000€?
2) Which is now the Bright Star equity fair value?
3) Which is now the Bright Star equity required rate of return? And its WACC?

Posted Date: 3/25/2013 5:44:11 AM | Location : United States







Related Discussions:- Calculate bright star equity fair value and wacc, Assignment Help, Ask Question on Calculate bright star equity fair value and wacc, Get Answer, Expert's Help, Calculate bright star equity fair value and wacc Discussions

Write discussion on Calculate bright star equity fair value and wacc
Your posts are moderated
Related Questions
Q. Explain about Labor Market  in AS-AD model? In AS-AD model, economy will always be on the response curve - the thick line in chart below.  Figure: The labor in the

Kennesaw University Professor Frank A. Adams III and Auburn University Professors A. H. Barnett and David L. Kaser man recently estimated the effect of legalizing the sale of cadav

Q. Simultaneous determination of Y in the IS-LM model? Simultaneous determination of Y and R in the IS-LM model   By combining IS curve and LM curve, we can graphically e

Illustrate the aspect depends onto producers and consumers surplus. a. How much advantage do producers and consumers receive by the existence of a market? b. How is the welf

How is the global social progress being measured today? Name some indicators of development progress that you believe reasonably reflect actual progress. What roles do corporate ci

Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on dairy prices. What impact do you suppose farm subsidies are likely to have on

However, these results should be approached with due caution. The limitations and problems associated with VAR modelling have been outlined in this paper, therefore these observati

Q. Explain the Money market diagram? Let's begin by studying the money market when GDP is given. When Y is given, MD will only rely (negatively) on R and we can draw a figure w

Axiom of completeness: Consumer's choice is complete. Implication: Since consumer is rational, she must have a unique preference relation. That means the consumer choice is ei

Suppose new instruments for a firm cost $18,000 along with an additional installation fee of $2,000, both of that are depreciable. Complete the depreciation schedule display below