Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Explain what capital structure theory (or theories) best describes the following situations.
A CEO decides to borrow $50,000 in new debt, and the share prices rise dramatically. He then decides to sell half of his own personal shares, and when this is reported in the Wall Street Journal, the share prices drop dramatically in value.
The corporate tax rate rises from 35% to 45%, and the XYZ Corporation decides to issue more debt. A year later, bankruptcy laws are changed to become much stricter and costlier. XYZ then decides to pay back half of its debt.
A CEO named Joe Bigwig is known for living large with very expensive cars and a huge mansion. Joe is seeking a large loan from a bank to finance some new projects for his corporation. However, the bank becomes concerned when they find out that he recently used company funds to buy a brand-new company jet and also schedules numerous business trips to Hawaii and stays in five-star hotels. The bank tells Joe he will receive the loan only if he agrees to scale back on his personal expenses and not give himself or any other executives a raise until the loan is paid back.
Assume the following information regarding U.S. and European annualized interest rates:
What is the asymmetric information concept? What role does this concept play in a company's decision to change its financial structure or issue new securities?
Visionary TV Corporation bonds are currently priced at $1,088. They have a par value of $1,000 and 12 years to maturity. They pay an annual coupon rate of 6%. What is the yield to maturity on this bond?
Suppose Coca-Cola sold an issue of bonds with a 30-year maturity, $2300 par value, a 13% coupon rate, What is the nominal annual current yield?
What is your portfolio dollar return and percentage return?
River Cruises is all-equity-financed with 100,000 shares. What is the ratio after it borrows?
Choose a financial crisis (for example, the 2006–2008 financial meltdown,
Assume that each of the following changes is independent (i.e., except for this change, all other factors remain unchanged). In each case, indicate what will happen to the earnings multiplier and explain why.
Beta Investments earned $50,000 before taxes at the end of 2014. What is the value of equity at the end of 2014?
Dave needs to pay $1000 at the end of each year for the next 3 years. He purchased 3 different annual coupon bonds to match the liabilities exactly. The bonds have the following properties: Determine the coupon rate of Bond B to match the cash flows ..
We are examining a new project. We expect to sell 5,300 units per year at $67 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $67 × 5,300 = $355,100. The relevant discount rate is 16 perce..
Calculate the Total deposits times capital for each year, Loans to total deposits for each year and Capital funds to total assets for each year for 2010 and 2011:
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd