Big Tree Inn Has an EBIT of $121,318, a Decrease

question 93

Multiple Choice

Big Tree Inn has an EBIT of $121,318, a decrease in net working capital of $1,204, interest expense of $5,200, net capital spending of $5,200, and a tax rate of 35 percent.The firm's WACC is 12.6 percent and its growth rate is 2.7 percent.What is the adjusted value of the firm?

• A)$694,311.08
• B)$708,007.49
• C)$756,168.69
• D)$733,333.33
• E)$789,022.15

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Definitions:

Functionalism

A perspective in sociology that emphasizes the societal institutions' roles in maintaining or undermining societal stability.

Conflict Theory

A sociological perspective that views social life as a competition, and focuses on the distribution of resources, power, and inequality as the causes of social conflicts.

Symbolic Interactionism

A theoretical approach in sociology that focuses on the ways individuals interpret and give meaning to social symbols, interactions, and experiences.

Feminism

A movement aiming to achieve equality of the sexes, especially through the advocacy of women's rights on the basis of the equality of the sexes.