1. Doughnut Enterprises has $44,000 in cash, $13,000 in inventory, $24,000 balance due to creditors, and $33,000 balance due from customers. What is the amount of owners' equity?
2. What are some other reasons a company might move forward with a project even if it doesn’t seem like it will add value.
3. The risk-free rate is 5.7%, the market risk premium is 11.6%, and the stock’s beta is 0.9. What is the required rate of return on the stock, E(Ri)?