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100 shares of stock outstanding and 40 warrants outstanding. the warrants are about to expire, and all of them will be exercised. the market value of the firm's assets is $2000, and the firm has no
Assume Mr. Davis can buy either a $10,000 corporate bond yielding 10% or a municipal bond yielding 7%. Assume risk is constant. Assume also that his Federal tax rate will be 28% and his State tax ra
List and briefly describe the key services investment banks provide to firms issuing securities before, during, and after the offering.
What do you think are the most important costs and benefits of becoming a publicly traded firm? If you were asked to advise an entrepreneur whether to take his or her firm public, what are the key
What are the general trends regarding public security issuance by U.S. corporations? Specifically, which security type is most often sold to the public? What is the split between initial and seasone
Differentiate between a U.S. commercial bank and the merchant banks found in other developed countries. How have these differences affected the securities markets in the United States versus those i
Discuss the U.S. banking system regulations that have had a major impact on the development of the U.S. financial system. In what ways has the U.S. system been affected (positively and negatively)
How does the role that financial intermediaries play in U.S. corporate finance compare to the role of non-U.S. financial intermediaries?
What is the dominant source of capital funding in the United States? Given this result and the fact that most corporations are net dis-savers, what decisions must most managers face in order to addr
How should a corporation estimate the amount of financing it must raise externally during a given year? Once that amount is known, what other decision must be made?
Which of the following statements regarding P/E ratios is true?
Assume that the current coporate bond yield curve is upward sloping. Under this condition, then we could be sure that.
With respect to the note, what TOTAL amount should be recorded in the current liabilities section of Riviera's December 31, 2009, balance sheet?
Ten years ago, Stigler Company issued $100 par value preferred stock yielding 8 percent. The preferred stock is now selling for $97 per share. What is the current yield or cost of the preferred stoc
Determine the times-interest-earned ratio for each probability. What is the probability of not covering the interest payment at the 30% debt level?
Quinn Auto expects to pay dividends during the next 12 months of $2.50 per share. The current price of their stock is $50.00 per share and they expect a constant growth of 5%.
Using the constant growth model, a firm's expected (D1) dividend yield is 3% of the stock price, and it's growth rate is7%, if the tax rate is .35% what is the firm's cost of equity?
How do bust up takeovers and subsequent liquidation of the parts increase the total value realized over the market price of the firm prior to its sale by parts?
Sao Paulo Sporting Goods is getting ready to produce a new line of soccer equipment by investing $1.5 million. The investment will result in additional cash flows of $435,000, $782,500, and $1,000,0
Harrison also plans to increase the debt ratio of what would be its Van Buren subsidiary--the effect of this would be to raise Van Buren's beta to 1.1. What is the per-share value of Van Buren to Ha
Valuation Van Buren currently expects to pay a yearend dividend of $2.00 a share ( D1=2.00). Van Buren dividend is expected to grow at a constant rate of 5% a year and its beta is .9. What is the cu
Evaluate the firm's approach to pollution control. Does it seem to be ethical? Why might incurring the expense to control pollution be in the best interests of the firm's owners despite its negative
The flotation costs associated with issuing preferred stock increase.
What was Bertin's total debt in 2008? How much new, long-term debt financing will be needed in 2009? (Hint: AFN - New Stock = New long-term debt).
Morgan Entertainment has a levered beta of 1.20. The firm's capital structure consists of 40% debt and 60% equity and it has a corporate tax rate of 40%. What is Morgan's unlevered beta?