What is market value of assets of firm

Assignment Help Financial Management
Reference no: EM13937372

The book value of equity of a firm is $82 million and the market value of equity is $96 million. The face value of debt of the firm is $40 million and the market value of debt is $16 million. What is the market value of assets of the firm?

Reference no: EM13937372

Questions Cloud

Issuance costs for external finances : Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $74 each year and expects these to grow at a rate of 0.05 each year. The upfront project costs are $559 and Ford's weighted average cost of capital is 0.07. If the i..
Software product line and waste water clean-up product line : Verano Inc. has two business divisions - a software product line and a waste water clean-up product line. The software business has a cost of equity capital of 11% and the waste water clean-up business has a cost of equity capital of 6%. What is the ..
What is the cost of preferred stock capital : Preferred stock of Ford Motors pays a dividend of $3 each year and trades at a price of $21. What is the cost of preferred stock capital for Ford?
What is the effective cost of debt of home depot : The outstanding debt of Home Depot has a yield to maturity of 0.04. The tax rate of Home Depot is 0.14. What is the effective cost of debt of Home Depot?
What is market value of assets of firm : The book value of equity of a firm is $82 million and the market value of equity is $96 million. The face value of debt of the firm is $40 million and the market value of debt is $16 million. What is the market value of assets of the firm?
Compute weighted average cost of capital of firm : A firm has a capital structure with $10 in equity and $9 of debt. The cost of equity capital is 0.2 and the pretax cost of debt is 0.07. If the marginal tax rate of the firm is 0.37 compute the weighted average cost of capital of the firm.
Calculate the profit or loss from the long-short strategy : Calculate the profit or loss from the following long/short strategy: You short sell 600 shares of ABC stock at $95 per share and immediately buy the S&P 500 index for half of the value of the short sale. After 1 year, ABC stock has declined to $70 pe..
What is expected dividend per share : Warr Corporation just paid a dividend of $1.25 a share (that is, D0 = $1.25). The dividend is expected to grow 8% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years?
Deposit into the account each month to meet his goal : Brett is 25 years old and wants to have $1.5 million in an investment account when he reaches age 65. He plans to begin depositing money into an investment account that earns 12%, compounded monthly. How much does he need to deposit into the account ..

Reviews

Write a Review

Financial Management Questions & Answers

  Use debt or equity to fund a project

If you were the financial manager of an organization and were deciding whether to use debt or equity to fund a project, what factors would influence your decision?

  Write about financial market in iceland

Write about Financial market in Iceland

  Operating and financial constraints placed on corporation

Operating and financial constraints placed on a corporation by loan provision are

  Deviation for comparing two risky stocks in isolation

When would the coefficient of variation be preferred over the standard deviation for comparing two risky stocks in isolation? Fully explain your answer.

  What is the yield to maturity for these bonds

Atlantis Fisheries issues zero coupon bonds on the market at a price of $415 per bond. Each bond has a face value of $1,000 payable at maturity in 17 years. What is the yield to maturity for these bonds?

  Receiving a fixed rate and paying a libor floating rate

You want to estimate the Fixed Rate for a $100M Notional, 3 year swap that has annual payments. You will be receiving a fixed rate and paying a LIBOR floating rate. The Spot rates for the next three years, based on the yield curve right now, are 6.5%..

  Which item would not appear on the income statement

Which journal entry reflects the adjusting entry needed on December 31?: Last year, BOC purchased software for $10,000. The expected life of the software is 2 years and it has no expected salvage value. Now, it is December 31, the end of the fiscal y..

  Afford the payment regardless of the term length

The cost of the truck is $18,000 and he is approved for an 8% loan but can choose to finance the loan for either 48 or 60 months. What will be the additional cost if he chooses the 60 month term instead of 48 months? You can assume that he can afford..

  What is the? bonds yield to maturity

Consider a coupon bond that has a par value of $1,000 and a coupon rate of 6?%. The bond is currently selling for $1,009.23 and has 2 years to maturity. What is the? bond's yield to maturity? (YTM)? What is the price of a perpetuity that has a coupon..

  Distinguish between a traceable cost and a common cost

Distinguish between a traceable cost and a common cost. Give several examples of each.

  What is the value of assuming this mortgage

Suppose we are assuming a $5 million 20-year mortgage with 8 years remaining at a rate of 4%. If we could obtain a new 8-year mortgage for 5%, what is the value of assuming this mortgage?

  Earnings per share are approximately

A stock report contains the following information: P/E 21.4, closing price 28.16, dividend 1.10, net chg .06, and an ask of 28.22 × 300. Which one of the following statements is correct given this information? The stock price has increased by 6 perce..

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!

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