The Globe Incorporated Has EBIT of $20 Million for the Current

question 91

Multiple Choice

The Globe Incorporated has EBIT of $20 million for the current year.On the firm balance sheet,there is $80 million of debt outstanding that carries a coupon rate of 8 percent.Investors seek a return of 12 percent on the firm,and the firm has a corporate tax rate of 40%.What is the value of the firm?

• A) $124,000,000
• B) $128,000,000
• C) $132,000,000
• D) $136,000,000

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Definitions:

Self-disclosure

The act of revealing personal information or feelings to others, which is an essential component of building intimacy in relationships.

Emotional

Related to feelings or expressions of feelings, including happiness, anger, fear, and sadness.

Intimacy

The feeling of close personal connection and trust achieved through open communication and emotional bond with another person.

Nonverbal Signals

Communication cues that do not involve verbal communication but instead use gestures, facial expressions, and body language to convey messages.