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1dfs corporation is currently an all-equity firm with assets with a market value of 100 million and 4 million shares
1in year 1 amc will earn 2000 before interest and taxes the market expects these earnings to grow at a rate of 3 per
1explain whether each of the following projects is likely to have risk similar to the average risk of the firma the
1harris corporation has 250 million in cash and 100 million shares outstanding suppose the corporate tax rate is 35 and
1what was the effective dividend tax rate for a us investor in the highest tax bracket who planned to hold a stock for
1what options does a firm have to spend its free cash flow after it has satisfied all interest obligations2abc
1you own your own firm and you want to raise 30 million to fund an expansion currently you own 100 of the firmrsquos
1apple computer has no debt as problem 21 in chapter 15 makes clear by issuing debt apple can generate a very large tax
1gladstone corporation is about to launch a new product depending on the success of the new product gladstone may have
1apple corporation had no debt on its balance sheet in 2008 but paid 2 billion in taxes suppose apple were to issue
1rumolt motors has 30 million shares outstanding with a price of 15 per share in addition rumolt has issued bonds with
1pelamed pharmaceuticals has ebit of 325 million in 2006 in addition pelamed has interest expenses of 125 million and a
1you are ceo of a high-growth technology firm you plan to raise 180 million to fund an expansion by issuing either new
1yerba industries is an all-equity firm whose stock has a beta of 12 and an expected return of 125 suppose it issues
1indell stock has a current market value of 120 million and a beta of 150 indell currently has risk-free debt as well
1in june 2009 apple computer had no debt total equity capitalization of 128 billion and a equity beta of 17 as reported
1hartford mining has 50 million shares that are currently trading for 4 per share and 200 million worth of debt the
1suppose microsoft has no debt and an equity cost of capital of 92 the average debt-to-value ratio for the software
1cisoft is a highly profitable technology firm that currently has 5 billion in cash the firm has decided to use this
1acort industries owns assets that will have an 80 probability of having a market value of 50 million in one year there
1consider a project with free cash flows in one year of 130000 or 180000 with each outcome being equally likely the
for problems 1ndash3 refer to the following table of estimated factor betasnbsp1using the factor beta estimates in the
1explain why you might expect stocks to have nonzero alphas if the market proxy portfolio is not highly correlated with
1consider the following stocks all of which will pay a liquidating dividend in a year and nothing in the interimnbspa
suppose that the risk-free rate is 5 and that the market risk premium is 7 what is the required rate of return on 1