Use the Information for the Question(s)below

question 89

Multiple Choice

Use the information for the question(s) below.
Shepard Industries expects free cash flow of $10 million each year.Shepard's corporate tax rate is 21%,and its unlevered cost of equity is 10%.The firm also has outstanding debt of $40 million and it expects to maintain amount of debt permanently.
-The value of Shepard Industries without leverage is closest to:

• A)$114 million.
• B)$50 million.
• C)$100 million.
• D)$64 million.

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Definitions:

Healthy Personality

Characteristics and behaviors in an individual that indicate well-being and the ability to manage life's challenges effectively.

Big Five Personality Traits

A theory that identifies five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Psychologists

Professionals specializing in the study and treatment of the mind and behavior.

Behaving

Acting in a manner that is in accordance with specific standards, rules, or expectations; the external display of actions or reactions.