VoyForums
[ Show ]
Support VoyForums
[ Shrink ]
VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, [2] ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 09:14:00 12/11/00 Mon
Author: Sean WIlson
Subject: Answers corrected by Dr. Hodges.

MC1. E
SA1. Mixed D + E until WACC is minimized and therefore frim value is maximized.
SA3. Invest in positive NPV projects. . . .
SA4. Capital Budgeting
TF1. True
TF4. True
TF6. True
TF7. False, positively
MC2. A
SA6. First increases and then decreases as firm offsets cost of increased risk of bankruptcy with benefits of increased tax shields.
TF8. False, bondholders not stockholders

2. 5*1125 divided (5*1125)*(500*27)=.2941
4. 10.43% i think. 5625/19125 * .087* (1-.40) + 13500/19125 +.126
4. 7.5% EBIT 15 - Int (80*.05) = 11 = NI 11/120 = ROE, .09166
(80/200)*.050+120/200 *.09166
b. 4.8 price/share 120/25
c. .44 11/25
d. 7.5% same as theory
e. 7.5=5+beta(14-5)
g. 24.50 TD = .35*70
h. .1327 (i think) 25-(interest 5.60) - tax =12.61/95
i. .6637 12.61/19
j higher, lower

[ Next Thread | Previous Thread | Next Message | Previous Message ]
[ Contact Forum Admin ]

Forum timezone: GMT-8
VF Version: 3.00b, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2019 Voyager Info-Systems. All Rights Reserved.