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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Magnum Enterprises has net operating income of $5 million. There is $50 million of debt outstanding, with a required rate of return of 6 percent. The required rate of return on the industry is 12 percent. The corporate tax rate is 40 percent. There are corporate taxes but no personal taxes. Compute the value of Magnum, assuming that the present value of bankruptcy costs are $10 million.
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