42. Metal Roofs has an equity beta of 1.65, a capital structure with 2 parts of debt for
every 3 parts of equity, and a zero tax rate. What is its asset beta?
A. 1.48
B. .40
C. 1.10
D. 1.06
E. .99
43. Which of these help prevent arbitrage from totally cor
33. A levered firm has a target capital structure of 30 percent debt and 70 percent
equity. The aftertax cost of debt is 6.5 percent, the tax rate is 34 percent, and the cost
of equity is 12.3 percent. The firm is considering a project that is equally as
49. The hypothesis that market prices reflect all publicly available information is called
_ form
efficiency.
A. open
B. strong
C. semistrong
D. weak
E. stable
50. If the financial markets are efficient, then investors should expect their investments
in t
27. The Red Hen currently has a debttoequity ratio of .45, its cost of equity is 13.6
percent, and its
beta is 1.49. The pretax cost of debt is 7.8 percent, the tax rate is 35 percent, and the
riskfree rate is 3.1 percent. The firm's target debttoequity r
38. Buster's Ice Cream has 2,500 bonds outstanding that are selling for $1,020 each and
yielding a
pretax 7.2 percent. There 60,000 shares of common stock outstanding with a beta of
1.3 and a market price of $56 a share. The riskfree rate is 4 percent, th
61. In examining the issue of whether the choice of accounting methods affects stock
prices, studies have found that:
A. the decision between LIFO and FIFO for inventory accounting can significantly affect
stock
prices.
B. a firm can affect its stock pric
54. Your best friend works in the finance office of the Delta Corporation. You are aware
that this friend trades Delta stock based on information he overhears in the office. You
know that this information is not known to the general public. Your friend co
21. When computing the weights to be used in a project's WACC equation, you should
use the:
A. proportions of debt and equity that will finance the project.
B. current market values of debt and equity.
C. average market weights of debt and equity that are
14. Firms A and B are identical except for their capital structures. Firm A is an allequity
firm while Firm B is levered. Given this, you can assume that Firm B's equity beta will be
_ Firm A's beta and its debt beta will be:
A. greater than; equal to zer
8. To calculate beta you divide the _ of the stock with the market portfolio by the
_ of the
market portfolio.
A. covariance; variance
B. variance; covariance
C. standard deviation; variance
D. expected return; variance
E. covariance; standard deviation
9
1. The discount rate for a project should equal the:
A. cost of equity of the firm.
B. expected return on a financial asset of comparable risk.
C. discount rate used on the firm's last profitable project.
D. firm's weighted average cost of capital.
E. mar
Ross, Westerfield, Jaffe, and Jordan's Spreadsheet Master
Corporate Finance, 11th edition
by Brad Jordan and Joe Smolira
Version 11.0
Chapter 12
In these spreadsheets, you will learn how to use the following Excel
Multifactor Regression Estimates
The foll
Ross, Westerfield, Jaffe, and Jordan's Spreadsheet Master
Corporate Finance, 11th edition
by Brad Jordan and Joe Smolira
Version 11.0
Chapter 22
In these spreadsheets, you will learn how to use the following Excel
EXP
LN
NORMSDIST
ActiveX Control
The foll
KENYA INSTITUTTE OF MANAGEMENT
KIM3155116
THEORIES OF ENTREPRENEURSHIP
PRESENTED TO MADAM DAMIANA
DATE 8TH AUGUST 2016
INTRODUCTION
ENTREPRENEURSHIP
The definition of entrepreneurship
The entrepreneurial function implies the discovery, assessment and expl
GARDNERS THEORY: CHARACTERISTICS AND
STRENGTHS
Intrapersonal Intelligence:
The teaching staff should possess abilities to recognize
ones own self-reflection, motivations, emotions and
inner states of being.
Interpersonal Intelligence:
The teaching staff
Ale Historia-ENG.indd 1
WARSAW
what a history!
www.warsawtour.pl
29.12.2015 12:57
View of the Old Town from the tower of St. Annes Church.
Warsaw past and present
The history of Warsaw is a mixture of a turbulent past, the will to survive, as well as the
WARSAW
TOP 10
www.warsawtour.pl
6b
9a
1c
6a
1b
1a
9
7
2b
3
2a
6c
4
8
2c
5a
Legend
1
5b Museum of King Jan IIIs
Palace at Wilanw
Old Town
1a The Royal Castle in Warsaw
Museum
2
10
Judaica
1b Old Town Market Square
6a POLIN Museum of the History
of Polish
What's In It for Me? CEOs Whose Firms
Are Acquired
Jay C. Hartzell
University of Texas at Austin
Eli Ofek
New York University
David Yermack
New York University
We study benefits received by target chief executive officers (CEOs) in completed
mergers and a
How to write a thesis
Hans Zappe
Version: June 14, 2012
Abstract
By applying a few general rules during the writing of a BSc, MSc or
PhD thesis, the resulting document can become a pleasure to evaluate.
The concomitant positive disposition of the referee,
WHAT TO DO
IN
WARSAW
IF
.?
Come rain or shine and no matter if
youre here for just a short while or for
longer, Warsaw is a great choice for any
mood or weather. The city has a fascinating history and is really full of surprises, revealing ever new secret
Brochure
More information from http:/www.researchandmarkets.com/reports/2703990/
Popcorn Market in Poland: Market Profile to 2017
Description:
This report presents data on the Popcorn consumption trends in Poland. It analyzes Popcorn consumption
volumes a
Andrea Sunada
FIN 441
Shafiqur Rahman
Fall 2016
Homework 2
1. Stock trading at $25 that can go up or down by 15% per period. Risk-free rate is
10%. Use one-period binomial model.
a. Determine the two possible stock prices for the next period
Size of upwar
Andrea Sunada
FIN 441
Shafiqur Rahman
Fall 2016
Homework 1
1. Bid = 7.44 Ask = 7.20, option expiring in 72 days. Risk free rate is:
Time till expiration = 72/360 = 0.20
Estimate of T-Bill rate = (7.44+7.20)/2 = 1.464
Time till expiration*estimate of T-bil
Zak Kelly
Qi Li
Catie Strahorn-Brown
Eric Yan
Executive Summary
Kohler Co. is pursuing a recapitalization bid in order to retain control of the company and remove
outsiders from its shareholder base. The company and minority shareholders both offered vast
Value of Common Equity (M's)
Shares of Common Stock Outstanding
Price per share of Common Stock
Market Value of Common Stock
Total Assets
$2,325.90
145
$34.87
$5,056.15
Memo: Book Value of Equity
$1,607
Cost of Common Equity using CAPM
Risk Free Rate
Beta
Payroll
Books and Beyond, Inc.
Payroll for the period ending
NUM FIRST
1 Sara
2 Sean
3 Colleen
4 Teri
5 Frank
6 Kristen
7 Theresa
8 Barry
9 Cheryl
10 Harry
11 Shing
12 Seth
13 Bob
14 Chris
15 Robert
16 James
17 George
18 Paul
19 Dean
20 Carol
21 Julia
22
Capital Budget Template
Assumptions:
Tax Rate
Old machine purchased for 1,600,000
Old Machine - Book Value 272,000
40%
Initial Investment
Installed cost of new asset
Cost of the new machine
Installation costs
Total cost of new machine
After-tax proceeds f
Capital Budget Template
Assumptions:
Tax Rate
Old machine purchased for 1,600,000
Old Machine - Book Value 272,000
40%
Initial Investment
Installed cost of new asset
Cost of the new machine
Installation costs
Total cost of new machine
After-tax proceeds f
BA303
Prof Dimond
Costs of Capital
Kd = Cost of Debt. Use TVM functions to find the yield. Yield = Kd. Pay attention to the before-tax and
after-tax rates.
Kpfd = Cost of Preferred Stock. Solve for the rate of a zero-growth perpetuity: r = D1/P0. r = Kpfd
PART A
Food
Sales
VC
contribution margin
total fixed cost
net income
Alcohol
27,000
21,600
5,400
33,000
16,500
16,500
total
60,000
38,100
21,900
10,950
10,950
sale mix
0.45
0.55
CM ratio
5,400/27,000=.2
16,500/33,000=.5
weight-average: (0.2 x 0.45) + (0.5