User Account

All Pages

Find out the interest rate

Assignment Help Accounting Basics
Reference no: EM132934898

Question - Three corporations Aashman Shumaila Fahim are identical and each has total assets of 1000 million Ashman is 1009% loan finance Shumaila has 09% interest bring debts and Fahim is equity is equal to value of assets. Tax rate is 50% on earning if the economics environment is goods all three firm shows operating income 1000 under average and poor economics environments operating income will be 500 and 250 million respectively.

Required -

1. Find out the interest rate when discount rate is 15%.

2. Find out the value of financial charges of all three companies.

Reference no: EM132934898

Questions Cloud

What is the nominal interest rate on the loan : The loan will cost 10% simple interest, for 4 months, with a 20% compensating balance. What is the nominal interest rate on the loan
How much is the taxable income of the retailer : How much is the taxable income of the retailer if he chooses the optional standard deduction and if he chooses the itemized deductions
What is the carrying amount of the financial asset : What is the carrying amount of the financial asset on Dec 31, 2019? Show complete solution and accurate answer thank you
What are the important factors regarding cash flow : What are the important factors regarding cash flow? Describe how the cash flow circulates between the company and the financial market
Find out the interest rate : Tax rate is 50% on earning if the economics environment is goods all three firm shows operating income 1000 under average. Find out the interest rate
Details of social works role in disaster events : Details of social works role in disaster events, considering group work and community practice approaches in particular - draw from critical theories
What is your estimate of the stock current price : The company's stock has a beta of 1.4, the risk-free rate is 7.5%, and the market risk premium is 4.5%. What is your estimate of the stock's current price
Who pays the greater tax and by how much : Ms. Brown has a house assessed at $55,800 (62% of sale value). Her tax rate is $3.25 per $100 of assessed value. Who pays the greater tax and by how much
Prepare an income statement for the company : The company had beginning merchandise inventory of $250,000, Prepare an income statement for the company for the month in good form

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd