Useful for bank to increase its capital to assets ratio

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1. Zephyr Electricals is a company with no growth potential. Its last dividend payment was $4.50, and it expects no change in future dividends. What is the current price of the company’s stock given a discount rate of 9 percent?

2. Explain financial leverage. Why will it be useful for a bank to increase its capital to assets ratio?

3. Explain the major differences between domestic capital budgeting and international capital budgeting?

Reference no: EM131851168

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