Firm has when it has trouble meeting its debt obligations

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Reference no: EM131916252

1. Discuss some of the options a firm has when it has trouble meeting its debt obligations.

2. If $90,000 is invested in a fund on December 31, 2016, and 5 equal annual withdrawals of $23,138.32 are made starting on December 31,2017, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?

3. A company’s stock return has a standard deviation of 12%. The correlation coefficient between the stock and S&P 500 Index is 0.6. S&P 500 Index has an expected return of 11% and a standard deviation of 5%. Currently T-bill rate is 5%.

What is the beta of this stock?

Reference no: EM131916252

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