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Saved Help The present value of a firm's projected cash flows are $15 million. The breakup value of the firm if you were to sell
Saved Help The present value of a firm's projected cash flows are $15 million. The breakup value of the firm if you were to sell the major assets and divisions separately would be $20 million. This is an example of what Peter Lynch would call a(n): Stalwart. Slow-growth firm. Turnaround. OAsset play Saved Helg If the nominal interest rate is 5% and the inflation rate is 3%, what is the real interest rate? (Do not round intermediate calculations Round your answer to 2 decimal places.) Real interest rate % Help Sav OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its variable costs per unit are $140. The corporate tax rate is 30 %. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many. a. What will be the percentage decline in sales if the economy enters a recession? Percentage decline in sales % b. What will be the percentage decline in profits if the economy enters a recession? ces Percentage decline in profits % c. Comparing your answers to (a) and (b), What is the firm's degree of operating leverage? Operating leverage Next 11 of 11
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