Ford expects to earn a free cash flow of $100, starting in 1 year, forever. the discount rate on the assets of the firm is 18%. further, ford has issued debt of $1,000 at an interest rate and yield-to-maturity of 5%. ford will perpetually roll this $1,000 in debt over, so that it always has a constant $1,000 in debt forever and always expects to pay 5% interest on this debt. finally, ford has a tax rate of 30%. what is the present value of ford’s interest tax shield?

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear