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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
the companye decided the most expedient way to demonstrate how interest rates as well as time impact the value of
explain how unpredictable market conditions and economies play a role in passive and active investment management
questions instructions capital budgeting for telecommunications services cost of retained earnings cost of capital
using microsofts financial statements what 3 items of important information does the income statement reveal about
justin walker enterprises is considering outsourcing its billing operations a consultant estimates that outsourcing
at the beginning of 2014 abc corp issued sold 50 million in 20-year callable bonds at par value of 1000 paying an 8
terminal value plays an important role in enterprise valuation what factors affect the estimate of terminal value how
1explain what the size effect is2assume all firms have the same expected dividends if they have different expected
1consider the price paths of the following two stocks over six time periodsnbspneither stock pays dividends assume you
1why does the capm imply that investors should trade very rarely2your brother joe is a surgeon who suffers badly from
1what are the only conditions under which the market portfolio might not be an efficient portfolio2explain what the