19. 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. Php 37,500,000.00 b. Php 10,000,000.00 c. Php 120,000,000.00 d. Php 100,000,000.00
19. 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. Php 37,500,000.00 b. Php 10,000,000.00 c. Php 120,000,000.00 d. Php 100,000,000.00
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
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Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...
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19 and 20 please
![19. 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. Php 37,500,000.00
b. Php 10,000,000.00
c. Php 120,000,000.00
d. Php 100,000,000.00
20. The appropriate WACC of a firm is 6.77%. With market return of 8%,
prevailing credit spread of 3%, tax rate of 30% and Equity ratio of
30%, what is the risk free rate of the firm with Beta of 1.5?
a. 4%
b. 5%
C. 6%
d. 7%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe24d9d34-46ce-4d0f-8234-eaa1c4b31238%2Fff899219-0564-4e8c-92ed-953660a824a5%2Fg23bwxb_processed.png&w=3840&q=75)
Transcribed Image Text:19. 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. Php 37,500,000.00
b. Php 10,000,000.00
c. Php 120,000,000.00
d. Php 100,000,000.00
20. The appropriate WACC of a firm is 6.77%. With market return of 8%,
prevailing credit spread of 3%, tax rate of 30% and Equity ratio of
30%, what is the risk free rate of the firm with Beta of 1.5?
a. 4%
b. 5%
C. 6%
d. 7%
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