1. Choice of topic from the following: independence, value of the audit report, regulation or regulatory bodies, competiton in Australian audit, cost benefit of mandatory audit, Laws and regulation. 250-300 words
2. A firm anticipates a perpetual pre-tax earnings stream of $100,000 and faces 35% corporate tax rate nvestors discount the earnings stream after corporate taxes at 15%. The personal tax rate on equity distributions is 12%, and the personal tax rate on interest is 28%. What is the value of the firm?
3. You have the opportunity to invest in a bond with a par value of $1000. The bond pays a semi-annual coupon of 9% over the life of the 5-year bond. If you have a required return of 10%, what is the price of the bond?