PLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while cost of equity is 10%. The Board of Directors of the company decided to sell 100% of the company for Php 1 Billion. Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000. ANSWER: 10,000,000 provide the solution please
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SPLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while
Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000.
ANSWER: 10,000,000
provide the solution please
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- SPLI, Inc. has a Debt to Equity Ratio of 3:1. After tax cost of debt is 5% while cost of equity is 10%. The Board of Directors of the company decided to sell 100% of the company for Php 1 Billion. Compute for the projected monthly average earnings assuming an EVA of Php 57,500,000.00 a. 37,500,000 b. 10,000,000 c. 120,000,000 d. 100,000,00012. Ernesto, Ine has projected average earnings every year of Php 100,000,000. Debt to Equity Ratio is 3:1 After tax cost of debt is 5% while the cost of equity is 10%. The Board of Directors of the company decided to sell the company for 1,000,000,000 computes for the Economic Value Added (EVA). a) Php 37,500,000.00 b) Php 50,000,000.00 c) Php 0 d) Php 25,000,000.00XYZ Ltd., experts a net income of $150,000. The company has 10% of 500,000 debentures. The equity capitalization rate of the company is 10%. (a) Calculate the value of the firm and overall capitalization rate according t the net income approach (ignore income tax). (b) If the debenture debt is increased to $750,000 and interest of debt is change to 9%. What is the value of the firm and overall capitalization rate?
- A. ABC Corp., expects a net income of Php. 250,000. The company has 10% of 5,000,000 Debentures. The equity capitalization rate of the company is 10%. 1. Calculate the value of the firm and overall capitalization rate according to the net income approach (ignoring income tax). 2. If the debenture debt is increased to Php. 750,000 and interest of debt is change to 8%. What is the value of the firm and overall capitalization rate?PROBLEM A. A. ABC Corp., expects a net income of Php. 250,000. The company has 10% of 5,000,000 Debentures. The equity capitalization rate of the company is 10%. 1. Calculate the value of the firm and overall capitalization rate according to the net income approach (ignoring income tax). 2. If the debenture debt is increased to Php. 750,000 and interest of debt is change to 8%. What is the value of the firm and overall capitalization rate? B. Yuki's projected net operating income of Php. 85,000. It has Php. 3,00,000, 5% debentures. 1. Calculate the value of the firm according to 10 net opening income and overall capitalization rate is 10%. 2. If debenture debt is increased to Php. 100,000. What is the value of the firm and the equity capitalization rate?PT. Sentosa Raya uses its own capital and debt capital. The agreed cost of debt is 10% and the interest to be paid on the debt is Rp. 3,000,000. The company earned an operating profit of Rp. 24,000,000 per year. The expected return is 30% per year. With these data, determine the value of the company and the company's cost of capital!
- 4. PCC Inc has a debt-to-equity ratio or 3:1. After tax cost of debt is 5% while cost of equity is 10%. The board of directors of the company decided to sell 100% of the company for P1,000,000,000. Compute the projected monthly average earnings assuming an EVA of P57,500,000. a) P37,500,000 b) P10,000,000 c) P100,000,000 d) P120,000,000 e) P130,000,000 5. QC Corp. declared its dividend consistent with its dividend yield of 0.10. This year, QC Corp's stockholder received P0.75 for every share they have in the company. The company's market value per share when the dividend was declared should be? a.) P7.50 b.) P5.70 с.) РО.13 d.) PO.75 e.) P7.60IXYZ Ltd., experts a net income of $150,000. The company has 10% 500,000 debentures. The equity capitalization rate of the company is 10%.g(a) Calculate the value of the firm and overall capitalization rate accordint the net income approach (ignore income tax).(b) If the debenture debt is increased to $750,000 and interest of debt inchange to 9%. What is the value of the firm and overall capitalizatiorate?Turtle Co. has a total debt ratio of 0.78. The company is considering building a new plant for $75 million. When the company issues new equity, it incurs a flotation cost of 9%. The flotation cost on new debt is 4%. Calculate the cost of the plant, including flotation costs. (Round to 2 decimals and enter the full value,e.g. 5 million must be entered as 5,000,000)
- The CFO of Yang Centers has asked you to calculate the EPS if the company were to change its capital structure from 0 percent debt to 90 percent debt. Calculate the EPS, rounded to the nearest $ 0.01, given the following information: Book value per share $ 8.75 Cost of debt 10 percent EBIT $ 500,000.00 Tax Rate 30 percent Total Capital $4,000,000.00Rian Corporation is currently working without using debt. The estimated operating profit per year is $16.065,180.00 while the equity capitalization rate (ke) is 18% pa. In the coming year, Rian is considering replacing some of his shares with a debt of $50 million, with an interest rate of 15% per annum. Question: a. Calculate the value of own capital capitalization (CS), the total capitalization value of the company (V), and the overall capitalization rate (ko) using the Net Income Approach. b. Calculate the amount of equity capitalized value, total capitalization value of the company, and overall capitalization rate using the traditional approach, if additional debt causes the equity capitalization rate (ke) to increase to 20%. c. Draw a graph of the two approaches.Use the following information about Red Rocks Inc. to answer the following question: Assume the following: Pays no taxes Return on net operating assets (RNOA) = 18% %3D Has $2,000 in net operating assets financed by equity At the beg. of the year borrows $1000 at 8%. Uses debt to buy additional operating assets. What is the return on equity (ROE) for Red Rocks? Edit View Insert Format Tools Table 12pt v Paragraph v B IU A e T?v I.