To complete this assignment, use “You Can Lead a Horse to Water but You Can’t Make Him Edit: Varied Effects of Feedback on Grammar across Upper-Division Business Students” and the guidelines for writing in the topic study materials. Write a 250-500-word summary of the article that includes paraphrases of the article, the research problem, questions, method, findings, and implications discussed by the authors. Prepare this […]

Caviar Fishfarm Ltd (‘CFL’) is unlevered, (all equity) has an equity beta of 1.25 and unlevered cash flows of $76,800 per annum that will continue in perpetuity. The expected market return is 10%p.a and Treasury bills earn 2%p.a. CFL is currently considering issuing $300,000 in new debt with an 8% interest rate. CFL would repurchase $300,000 of its own shares, using the proceeds of the […]

Hi can you please answer and explain the following questions, thank you! Q Corporation and R Inc. are two companies with very similar characteristics. The only difference between the two companies is that Q Corp. is an unlevered firm, and R Inc. is a levered firm with debt of $5 million and cost of debt of 10%. Both companies have earnings before interest and taxes […]

JBL Industries is an all-equity financed corporation with a current 12% cost of capital and $200m market capitalization (risk free rate is 5% and the company’s stock beta is 1). JBL business has become stable and the firm has been generating a stable stream of cash in recent years. 2) Management contemplates to replace 25% of the equity with debt through issuing risk-free debt and […]

1. Which of the following is most likely to have unlimited liability? a. silent shareholder b. general partner c. limited liability partner d. unlimited shareholder 2. Which of the following is NOT an advantage of a partnership? a. One partner can make decisions that bind all other partners. b. Risk can be shared. c. It is easy to set up. d. Partnerships involve few legal […]

WWT is considering replacing a $5 million piece of equipment. The project will generate pretax savings of $1,500,000 per year, and not change the risk level of the firm. The initial expense will be depreciated straight-line to zero salvage value over 5 years; the pretax salvage value in year 5 will be $500,000. The firm can obtain a 5-year $3,000,000 loan at 12.5% to partially […]

Hi can I please have some help with the following question? Thanks. BDJ Ltd wants to issue new 25-year bonds for some much-needed expansion projects. The company currently has 7.8% coupon bonds on the market that sell for $1125, make semi-annual payments and matures in 20 years. What coupon rate should the company set on its new bonds if it wants them to sell at […]

Consider three bonds with 5.90% coupon rates, all making annual coupon payments and all selling at face value. The short term bond has a maturity of 4 yrs, the intermediate-term bond has a maturity of 8 years, and the long-term bond has a maturity of 30 yrs. a. What will be the price of the 4 year- bond if its yield increases to 6.90%? Round […]

Midland Utilities has a bond issue outstanding that will mature to its $1000 par value in 12 years. The bond has a coupon rate of 11% and pays interest annually. a. Find the value of the bond if the required return is (1) 11%, (2) 15%, and (3) 8% b. Plot your findings in part a on a set of required return (x-axis)-market value of […]

i. Investment X for 100,000 is invested at a nominal rate of interest j, convertible semiannually. After four years, it accumulates to 214,358.88. ii. Investment Y for 100,000 is invested at a nominal rate of discount k, convertible quarterly. After two years, it accumulates to 232,305.73. iii. Investment Z for 100,000 is invested at an annual effective rate of interest equal to j in year […]