Business, 06.04.2020 20:18, iliketurtures
FCOJ, Inc., a prominent consumer products firm, is debating whether to convert its all equity capital structure to one that is 30 percent debt. Currently, there are 12,000 shares outstanding, and the price per share is $81. EBIT is expected to remain at $57,600 per year forever. The interest rate on new debt is 6 percent, and there are no taxes. a. Allison, a shareholder of the firm, owns 250 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. What will Allison's cash flow be under the proposed capital structure of the firm? Assume she keeps all 250 of her shares. (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)c. Assume that Allison unlevers her shares and re-creates the original capital structure What is her cash flow now? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) a. Cash flow b. Cash flow c. Cash flow
Answers: 3
Business, 22.06.2019 05:10, russboys3
The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?
Answers: 1
Business, 22.06.2019 08:00, truthqmatic16
Compare the sources of consumer credit(there's not just one answer)1. consumers use a prearranged loan using special checks2. consumers use cards with no interest and non -revolving balances3. consumers pay off debt and credit is automatically renewed4. consumers take out a loan with a repayment date and have a specific purposea. travel and entertainment creditb. revolving check creditc. closed-end creditd. revolving credit
Answers: 2
Business, 22.06.2019 14:30, karleygirl2870
Your own record of all your transactions. a. check register b. account statement
Answers: 1
FCOJ, Inc., a prominent consumer products firm, is debating whether to convert its all equity capita...
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