1. Coolibah Holdings is expected to pay dividends of $1.10 every six months for the next three years. If the current price of Coolibah stock is $21.00 and? Coolibah's equity cost of capital is 16% what price would you expect? Coolibah's stock to sell for at the end of three? years?
2. What were some of the unsound developments in the LBO market that began to take place in the late 1980s? What were the reasons for the increase in LBO activity during the early 1980s?