1. Mike needs to borrow money and he promised to you $1,000 in one year. How much would you lend to mikes if your annual discount rate is 15%?
2. Miracles has a required return of 16% a marginal tax rate of 24%, and dividend yield of 7%. What is te stocks capital gain if the company is committed to increasing the dividend at a constant rate?
3. Kellogg's inc, has current assets of $4.3 million, net fixed assets of 14.5 million, and total long term debt if $5,8 million. What is the firms current liabilities if the total equity value is $10.3 million?