Reference no: EM131043971
Questions
1. What is capital structure, and how do corporate decisions involving capital structure impact the value of a business?
2. What is Free Cash Flow, how is it measured, and how does corporate management of it impact the value of a business?
3. How do Merger and Acquisition (MBA) decisions impact the value of a business? Please answer this question from the perspective of both the acquiring firm shareholders and the selling firm shareholders. In addition, explain how value is created or destroyed in M&A.
4. What is a cash distribution decision, and how does it impact the value of a business? Be sure to explain the advantages and disadvantages of dividends, open market share repurchases, fixed. price share repurchases and Dutch auction share repurchases.
5. What is the weighted average cost of capital (WACC) and how do you calculate it? Why is the determination of an accurate WACC important for a business? Finally, please explain the CAPM formula, including how to calculate each of its components and, please explain the difference between a levered beta and an unlevered beta.
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How much does a share of preferred stock cost today
: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $29 in perpetuity, beginning 18 years from now. If the market requires a return of 4.3 percent on this investment, how much does a share of preferred stock cost..
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Experiencing rapid growth-what is the projected dividend
: Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 8 percent per year indefinitely. The required return on this stock is 14 percen..
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Contemporary approaches to management
: Explain how the four contemporary approaches to management are different from one another. Define "open systems" and describe the internal, competitive, and macroenvironments of an organization.
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Calculate aftertax cash flows for first year for each bond
: Suppose your company needs to raise $52 million and you want to issue 25-year bonds for this purpose. Assume the required return on your bond issue will be 7 percent, and you’re evaluating two issue alternatives: A semiannual coupon bond with a coupo..
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What is the weighted average cost of capital
: What is the weighted average cost of capital (WACC) and how do you calculate it? Why is the determination of an accurate WACC important for a business
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Odd dividend policy-how much will you pay for share today
: Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $5 per share for each of the next five years, and then never pay another dividend. If you require ..
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Total amount of imports
: What effect might the depreciation (weakening) of the U.S. dollar relative to the Canadian dollar have on the total amount of imports into the U.S. from Canada? (give the effect and explain why in one sentence)
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Swot matrix for bob supermarket
: Conduct a SWOT analysis and SWOT matrix for Bob's Supermarket, and identify strategic alternatives that should be considered. Among the alternatives, which course of action would you propose and why? Provide detailed justification for your respons..
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The dividend strategy is part of the larger process
: The dividend strategy is part of the larger process of trying to keep the shareholders satisfied. A good thing for job security… Clearly, senior managers need to be strategic, but still be aware of the short-term consequences. However, decisions that..
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