Hartman Motors has $18 million in assets, which were financed with$6 million of debt and $12 million in equity. Hartman’s beta is currently 1.3, and its tax rateis 35%. Use the Hamada equation to find Hartman’s unlevered beta, bU.
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Hartman Motors has $18 million in assets, which were financed with
$6 million of debt and $12 million in equity. Hartman’s beta is currently 1.3, and its tax rate
is 35%. Use the Hamada equation to find Hartman’s unlevered beta, bU.
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- Hartman Motors has $24 million in assets, which were financed with $6 million of debt and $18 million in equity. Hartman’s beta is currently 1.25, and its tax rate is 30%. Use the Hamada equation to find Hartman’s unlevered beta, bU.3)You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn’s has a reported equity beta of 1.4, a debt-to-equity ratio of .3, and a tax rate of 21 percent. Based on this information, what is the asset beta for Lauryn’s? 5)Lauryn’s Doll Co. had EBIT last year of $40 million, which is net of a depreciation expense of $4 million. In addition, Lauryn’s made $5 million in capital expenditures and increased net working capital by $3 million. Using the information from Problem 3, what is Lauryn’s FCF for the year?You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of 1.5, a debt-to-equity ratio of .4, and a tax rate of 21 percent. Based on this information, what is the asset beta for Lauryn's? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Lauryn's asset 1.22 x beta
- You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of 1.7, a debt-to-equity ratio of 0.7, and a tax rate of 20 percent. Based on this information, what is the asset beta for Lauryn's? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Lauryn's asset betaYou want to estimate the Weighted Average Cost of Capital (WACC) for Levi Inc. The company’s tax rate is 21% and it has the equity beta of 1.24. Its debt value is $2,304 million and the equity market value is $70,080 million. The company’s interest expense is $83 million. Assume that the risk-free rate is 5% and the market return is 12%. Based on the information, compute the WACC for LeviSuppose you are estimating the WACC for Columbus Inc. It has the following data from its balance sheet: total debt = $200 million; total equity=$120 million. It has 20 million shares outstanding, and its stock is trading at $32 per share. Your analysis shows that the company's current borrowing rate is 7%, and that the cost of equity is 13%. If the company marginal tax rate is 30%, what is its WACC?
- Counts Accounting’s beta is 1.15 and its tax rate is 40%. If it is financedwith 20% debt, what is its unlevered beta?Give typing answer with explanation and conclusion Fama's Llamas has a weighted average cost of capital of 11.5 per cent. The company's cost of equity is 16 per cent, and its cost of debt is 8.5 per cent. The tax rate is 35 per cent. What is Fama's debt–equity ratio?Oblib Inc. has a debt-equity ratio of 2, and a weighted average flotation cost of 4%. What is the dollar flotation cost if the company were to raise $1.5 million in the capital market? Please if you can, show all calculations
- Company has a levered beta of 1.29, its capital structure consists of 36% debt and the remaining as equity, and its tax rate is 40%. What would the company's beta be if it used no debt? Round your answer to two decimal places of a whole number. (Hint: Use the Hamada equation.) Group of answer choices: 0.92 0.94 0.98 1.00 0.96The Ashwood Company has a long-term debt ratio of 0.50 and a current ratio of 1.60. Current liabilities are $970, sales are $5,175, profit margin is 9.80 percent, and ROE is 17.60 percent. What is the amount of the firm's net fixed assets? Hint: This is another complex problem that requires a number of steps. Remember that CA + NFA=TA. So, if you find CA and TA, then you can solve for NFA Helpful Equations: Long-term debt ratio - LTD/(LTD + TE) CR-CA/CL PM-NI / Sales ROE-NI/TE O $3,851.53 O $3,601.92 O $5,181.07 O $6.733.07 O $2.881.53NESTLE HAS A BETA OF 1.1 AT DEBT RATIO OF 25%. AND CADBURY HAS A DEBT RATIO OF 40% AND A BETA OF 1.3. THE MARGINAL TAX RATE IS 30%. WHAT IS THE UNLEVERED BETA FOR BOT NESTLE AND CASBURY RESPECTIVELY