Homework Answers
Hi, As per the HOMEWORKLIB RULES, in case of multiple questions, I need to solve the first question.
The amount is computed as shown below:
= [ [ Earnings before interest and tax x (1 - tax rate) ] / Unlevered cost of capital ] + Amount of debt x tax rate
= [ [ $ 3,800 x (1 - 0.22) ] / 0.154 ] + $ 2,600 x 22%
= $ 19,819 Approximately
I request you to please post remaining questions separately, since as per the guidelines in case of multiple questions, I need to solve the first question.
Feel free to ask in case of any query relating to this question
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