Business, 25.02.2020 01:40, rambocayden8018
Global Pistons (GP) has common stock with a market value of $ 200 million and debt with a value of $ 100 million. Investors expect a 15 % return on the stock and a 6 % return on the debt. Assume perfect capital markets. a. Suppose GP issues $ 100 million of new stock to buy back the debt. What is the expected return of the stock after this transaction? b. Suppose instead GP issues $ 50.00 million of new debt to repurchase stock. i. If the risk of the debt does not change, what is the expected return of the stock after this transaction? ii. If the risk of the debt increases, would the expected return of the stock be higher or lower than when debt is issued to repurchase stock in part (i)?
Answers: 1
Business, 22.06.2019 13:50, xcoder1732
Suppose portugal has 700 workers and 26,000 units of capital, and france has 18,000 workers and 700 units of capital. technology is identical in both countries. assume that wine is the capital-intensive good and cloth is the labor-intensive good. which of the following statements is correct if the nations start trading with each other? a) wages will increase in portugal. b) rental rates in france will increase. c) wages in france will decrease. d) rental rates in portugal will increase.
Answers: 2
Business, 22.06.2019 20:00, ethanyayger
Acompetitive market in healthcare would a. overprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers b. underprovide healthcare because it would eliminate medicare and medicaid c. underprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers d. overprovide healthcare because it would be similar to the approach used in canada
Answers: 1
Business, 22.06.2019 22:50, rydersasser12
Awork system has five stations that have process times of 5, 9, 4, 9, and 8. what is the throughput time of the system? a. 7b. 4c. 18d. 35e. 9
Answers: 2
Global Pistons (GP) has common stock with a market value of $ 200 million and debt with a value of $...
Computers and Technology, 25.07.2019 18:20