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
Outline briefly a.      How people make decisions? b.      How they interact? c.       How economy as a whole works? 1.  Give three examples of important trade offs, th

what is a limitation of nation income

Explain about economic cycle The economic cycle is a period of approximately 6 or 7 years in which the economy completes a cycle of downturn, recovery, recession, and boom. A p

Discuss what policy changes he might be likely to propose with respect the issue that you identified as one about which he might be concerned.

To overcome the stagnant growth it was experiencing for the past 10-15 years, Japan undertook which of the following measures? Answer Undertook programs to build infrastructure

Explaining balance of payments: First, with the second oil shock of  1979-80 and  doubling of  India's  import bill along with  dismal  export performance as result of severe

What are the requirements for something to be considered money? Why does the dollar have value?

define history and full deatil of command economy

C=Ca+.95(Y-T) Ca=400-20r T=1200 + .4Y (M/P)^d = .35Y - 5r (M^s/P)=2000 Ip=1500-20r G=2200 NX=500-.06Y a. Compute the multiplier b. Derive the equation for Ap c. Derive the equatio

Use the monopoly model to explain how providers are able to charge different groups of patients different prices.