What would abc drilling total value be if it had no debt

Reference no: EM13294021

ABC Drilling has debt with a market value of $200,000 and a yield of 9%. The firm's equity has a market value of $300,000, its earnings are growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what would ABC Drilling's total value be if it had no debt?

Reference no: EM13294021

Questions Cloud

What are special characteristics of current regulator diode : What are the SPECIAL CHARACTERISTICS,APPLICATIONS and PHYSICALCONSTRUCTION/FUNCTION of a CURRENT REGULATOR DIODE

What is the shaft torque at full load : 1. A 3 phase, wye connected synchronous generator rated at 10kVA, 230V has a synchronous reactance of 1.2 ohms per phase and an armature resistance of 0.5 ohms per phase. Calculate the percent voltage regulation at full load if the power fact..

Discuss naturalism using canterburry tales : What were the consequences of contagious such as the plague, or the Black Death (pg.312) the late medieval literary accomplishments including the movement known as naturalism in literature. Discuss naturalism using Canterburry tales, Painting by jacq..

Compute the maximum height attained by the rocket : A model rocket launches with an initial velocity of 6 m/s, at an angle of 88 degrees (with respect to the horizon). What is the maximum height attained by the rocket

What would abc drilling total value be if it had no debt : A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what would ABC Drilling's total value be if it had no debt?

Explain how many atoms of he gas are present : How many atoms of He gas are present in a 450 mL container at 35°C and 740 mmHg

What is the maximum height attained by the rocket : A model rocket launches with an initial velocity of 6 m/s, at an angle of 88 degrees (with respect to the horizon). What is the maximum height attained by the rocket

Determine the average power delivered to the resistor : A current source i(t) is connected to a 50 ohm resistor. Find the average power delivered to the resistor, given that i(t)is: a) 5 cos 50t A b) 5cos(50t-45 degrees A c) 5 cos 50t-2cos(50t-.873) A d) 5 cos 50t-2 A

Perspectives in the balanced scorecard : In your opinion, what are the most difficult aspects of simultaneously balancing the four perspectives in the balanced scorecard? Be specific and give examples.

User Account

All Pages