Week_7_Problem_Solution - Here is Week 7 Solutions ~...

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Here is Week 7 – Solutions ~ Thanks! Please compare this printout to yours, if you receive a deduction, then you’re analysis may have been too  short or lacked details.  Note citations and references were optional!   Also, I have compiled the best student examples to use as solutions samples of what I was looking for in  your own individual analyses for problems 10-2, 10-3 and 10-4!  There should be two different versions  displayed showing how the answer was solved for each problem.  Question 10-2 Since this is a critical thinking question the answer may very per student. What I was looking for was a detailed, researched or well thought out analysis to receive full credit in this area, which was also spelled-checked. Example: The cost of debt would increase if the risk-free rate were to increase. Since Wikipedia states that, Cost of equity = Risk free rate of return + Premium expected for risk, I would think if the risk free rate is higher it will also raise the Cost of equity – Citation(s) were optional. When the rate increases the amount of debt that is due to a bondholder would increase, thus increasing the
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This note was uploaded on 05/30/2010 for the course ACCT A280 taught by Professor Roxannevisser during the Spring '09 term at Rasmussen College.

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Week_7_Problem_Solution - Here is Week 7 Solutions ~...

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