1. What are the challenges Spirit Airlines faces in keeping prices low and improving service?
2. Dakota Co. has expected earnings before interest and taxes of $8,100, an unlevered cost of capital of 10 percent, and debt with both a book and face value of $14,000. The debt has an 8 coupon. The tax rate is 34 percent. What is the value of the firm?
3. The Lo Sun Corporation offers a 6.2 percent bond with a current market price of $795.50. The yield to maturity is 8.78 percent. The face value is $1,000. Interest is paid semiannually. How many years until this bond matures?