Business
Business, 17.07.2020 18:01, zay179

HH Industries has 50 million shares that are currently trading for $4 per share and $200 million worth of debt. The debt is risk free and has and interest rate of 5%, and the expected return of HH stock is 11%. Suppose a strike causes the price of HH stock to fall 25% to $3 per share. The value of the risk free debt is unchanged. Assuming there are no taxes and the risk of HH's assets is unchanged, what happens to HH's equity cost of capital

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 16:00, Virnalis1112
Which type of investment offers both capital gains and interest income? a. property b. cds c. stocks d. bonds
Answers: 2
image
Business, 22.06.2019 09:00, jamesgraham577
Afood worker has just rinsed a dish after cleaning it. what should he do next?
Answers: 2
image
Business, 22.06.2019 17:00, allofthosefruit
Jillian wants to plan her finances because she wants to create and maintain her tax and credit history. she also wants to chart out all of her financial transactions for the past federal fiscal year. what duration should jillian consider to calculate her finances? from (march or january )to (december or april)?
Answers: 1
image
Business, 22.06.2019 19:10, boi7348
Pam is a low-risk careful driver and fran is a high-risk aggressive driver. to reveal their driver types, an auto-insurance company a. refuses to insure high-risk drivers b. charges a higher premium to owners of newer cars than to owners of older cars c. offers policies that enable drivers to reveal their private information d. uses a pooling equilibrium e. requires drivers to categorize themselves as high-risk or low-risk on the application form
Answers: 3
Do you know the correct answer?
HH Industries has 50 million shares that are currently trading for $4 per share and $200 million wor...

Questions in other subjects:

Konu
History, 17.02.2021 19:20