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1. The Tip-Top Paving Co. wants to be levered at a debt to value ratio of .6. The cost of debt is 11%, the tax rate is 34%, and the cost of equity for an all equity firm is 14%. What will be Tip-Top's cost of equity?
0.08%
3.06%
14.0%
16.97%
None of the above.
2. An IPO of a firm formerly financed by venture capital is carried out for what primary purposes?
Insiders can sell their shares or cash out
Generate cash to pay down bank indebtedness
To establish a market value for the equity and provide funds for operations
All of the above.
3. The value of a corporation in a levered buyout is composed of which following four parts:
unlevered cash flows and interest tax shields during the debt paydown period, unlevered terminal value, and asset sales.
unlevered cash flows and interest tax shields during the debt paydown period, unlevered terminal value and interest tax shields after the paydown period.
levered cash flows and interest tax shields during the debt paydown period, levered terminal value and interest tax shields after the paydown period.
levered cash flows and interest tax shields during the debt paydown period, unlevered terminal value and interest tax shields after the paydown period.
asset sales, unlevered cash flows during the paydown period, interest tax shields and unlevered terminal value.
The following are summary financial information for Parker Corporation, and Boulder, Corporation, for three recent years:
Clarion contractors finished the given transactions and events. Jan 1 paid 255440 cash plus 15200 in sales tax and 2500 in transportation fees for a new loader.
Procedures/processes contributing to the integration of standardization and simplification in developing specifications for new products.
Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.25. Processing an order for more disks cost $16. Zip uses 62,000 disks annually, and the company has a 24% cost of ..
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