1.) EPS growth rate is 1.17%, .60%, and 5.58%.
Market/book ratio is 1.5, 1.15, .90, and .77.
PE ratio is 12.5, 12.83, 14.65, and 13.3.
As is the case for Georgia Atlantic, operating in a mature market, there are only a few growth
2.) NPV= 36,955.10. NPV is most consistent with the goal of owner wealth maximization. A
projects NPV is the dollar amount of change in the value of the firm as a result of undertaking
the project. A project is deemed acceptable i
1.) A.) The capital structure is how a firm finances its overall operations and growth by using
different sources of funds. Debt comes in the form of bond issues or long-term notes payable,
while equity is classified as common stock, preferred stoc
A. Boudoirs Inc: Leasing arrangement: The company can negotiate for a lease to own
arrangement for the new building with a builder or contractor.
B. Timberland Power & Lights: Long-term bonds: Reasonable norm for long-term debt wi
1.) a.) It is because TECO sells bonds at par and sets the coupon rates at the market rate of
interest when the bonds are issued, interest rates have risen over the last 25 years, and that
explains the rising pattern of coupon rate
Case 28 Evan Chacon
A. Boudoirs Inc- Preferred Stock (nonconvertible), bank-term loan. I chose this
because the real estate and the inventory are under mortgage no further long-term
debt is recommended and to secure the bank credit line inventory is under
Charles Kimbrell 1
1.) The T- bond return is independent of the state of the economy because government securities
are considered to be free of default risk. Without risk of default, the state of the economy will not
affect the expected return of a