ECON 374- Third Exam
Use the following to answer questions 1-5:
A firm has an expected perpetual EBIT = $4,000. The unlevered cost of capital = 15% and there are 20,000 shares of stock
outstanding. The firm is considering issuing $8,800 in new par bonds t
ECON 374- Exam 2
Use the following to answer questions 1-3:
Which of the following is correct?
Security Z has the greatest total risk because it has t
EXAM II: PRACTICE
The long-term bonds issued by state and local governments in the United States are
Floating rate bonds.
Zero coupon bonds.
All else the same, if interest rates fal
Questions on Does the 2008 Short-Sale Ban Prevent a Market Crash? by Nguyen
and Tang (2009).
Conventional wisdom doesnt like the idea of ban on short sale. It argues that the short
sale ban will
1. artificially Increase (increase or decrease) the pr
EX 1_Take-Home Part
Examine the financial statements below. Use this information to answer questions 1-7.
Note: All figures are in millions of dollars.
The XXX Corporation: Balance Sheet, 2008
Cash & marketable securities