1. MindX has expected earnings before interest and taxes of $50,000, an unlevered cost of capital of 15 percent, and a tax rate of 40 percent. The company also has $10,000 of debt that carries a 7 percent coupon. The debt is selling at par value. What is the value of this firm?
$222,579.31
$223,333.33
$224,108.16
$204,000
$225,476.91
2. A stock has returns of 2 percent, 18 percent, -25 percent, and 15 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?
Choose correct answer below:
-25.4 to 34.1 percent
-36.7 to 41.7 percent
-8.7 to 11.6 percent
-17.1 to 22.1 percent
-56.3 to 61.3 percent