A company has zero-coupon bonds outstanding that mature one year from today and have a face value of $500. The bonds do not include any covenants that restrict the company from issuing additional debt, even if this additional debt is of higher seniority than the existing bonds. The company will realize all of its cash flow next year. This cash flow will be $200 with probability 1/3, $600 with probability 1/3, and $1,000 with probability 1/3. The company is planning to issue new bonds with a face value of $200 that will be senior to the old debt and that will also be due in one year. Assume for simplicity that the risk-free rate and market risk premium are zero (so there is no discounting, and thus the value of a claim today is equal:.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)

Breanna completed the lease term on her car and decided to turn the car in instead of purchasing it. upon inspection the dealership noted that the windshield was cracked. what kind of fee will breanna be required to pay as a result?

Ryan is deciding between attending western state university and eastern state university. he cannot attend both universities simultaneously. both are fine universities, but the reputation of western is slightly higher, as is the tuition. let mu subscript upper e and mu subscript upper w be ryan's marginal utilities from attending eastern and western state universities respectively and upper p subscript upper e and upper p subscript upper w be the prices of attending eastern and western state universities. using the rule of consumer optimum, ryan will decide to attend eastern state university, if mue/pe exceeds muw/pw attend eastern state university if mue/pe is less than muw/pw attend western state university, if pe/mue< pw/muw attend western state university, since it gives him more utility.