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management of the sosaditisover company needs to determine its cost of capital in order to evaluate some large capital
1 if it were unlevered the overall firm beta for wild widgets inc wwi would be 11 wwi has a target debtequity ratio of
companyy would like to borrow 10 million at floating rates to fund a 5-year project while companyx desires 10 million
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1 silver currently trades for 99 per ounce the cost to store sliver is 07 per year continuously compounded the riskless
bond valuationan investor has two bonds in his portfolio that both have a face value of 1000 and pay a 6 annual coupon
1 dupont current trades for 9837 per share and the riskless rate of interest is 35 per year continuously compounded
consider a project with free cash flows in one year of 90000 in a weak economy or 117000 in a strong economy with each
1 a stock has an expected return of 10 percent its beta is 150 and the expected return on the market is 8 percent what
jessica the owner of sisco pizza is a sole proprietor jessica wants to obtain additional capital to expand sisco pizza
part 1 abc expects sales of 19995000 this year the cost of goods sold is expected to be 11023000 while selling general
1 a company seeking to fight off a hostile takeover might employ the service of an investment banking firm to develop a
part a abc has 12243000 of interest-bearing debt outstanding and it pays an interest rate of 76 percent annually on
suppose hornsby ltd just issued a dividend of 248 per share on its common stock the company paid dividends of 198 205
fcoj inc a prominent consumer products firm is debating whether or not to convert its all-equity capital structure to
your company has agreed to a 420 million fixed commitment line of credit the loan agreement calls for you company to
1 blockout co has 76622 bonds outstanding that are selling at par value the bonds yield 81 percent the company also has
starlight foods went public by issuing 1 million shares of common stock 25 per share the shares are currently trading
consider a stock xyz corporation currently trading at 50 with annualized volatility of 65 the continuously compounded
just as times mirror is about to agree to the peps transaction congress passes a sweeping tax reform of the rules on
xyz corporation is a coal miner it takes one year to extract the coal and xyz pays 500 in mining expenses paid at the
abc motor credit the finance arm of abc motor company has been making auto loans for 50 years to buyers of abcs cars it
abc bank does business with an xyz investment company whose only business is to buy long-term loans from abc bank xyz
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a used automobile can be purchased by a student to provide transportation to and from university for 25000 as-is ie