Bradley Enterprises has budgeted unit sales as follows: S…

Bradley Enterprises has budgeted unit sales as follows: September  3,000 October  5,000 November  6,000 December  6,500 January  5,500 Ending Inventory for each month should be equal to 1,000 units plus 10% of next month’s sales. Total units to be produced for November are:

An unlevered firm is worth 10,000.  It’s tax rate is 25%.  T…

An unlevered firm is worth 10,000.  It’s tax rate is 25%.  The required return of the firm’s no debt equity is 10%.  The firm issues 800 of debt to pay a dividend to existing shareholders.  The interest rate on the debt is 5%, the dollar amount of debt is fixed in perpetuity and all interest expense can be used to reduce taxable income.  After the debt is issued and the dividend is paid, what is the value of the levered firm (VL = Debt + Equity).