MC – Value of Corporate Bond Thought of As…
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
We can think of the value of a corporate bond as Bond value without default +/- ______.
We can think of the value of a corporate bond as Bond value without default +/- ______.
Determine the value of a futures contract on the Standard and Poor’s Index given the current level of the index, the dividend yield, and the risk-free rate.
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Given the number of burgers that will be produced, determine the fixed costs, variable costs, and the average cost per burger.
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Given the firm’s profits, sales, and degree of operating leverage, estimate the impacts on profits if sales turn out differently than expected.
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Assuming the firm is financed by debt and equity, and given a grid of values with missing numbers, find rE, rA, βD and βA.
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Provide Surf & Turf’s Current stock price using the constant-growth DCF model. Then recompute the stock price if the firm switches to a regular cash dividend instead of share repurchases
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Calculate the market price of the stock after the firm issues more debt and uses the proceeds to buy back common equity. Then calculate the number of shares that can be repurchased, the market value of the firm, the new debt ratio, and who gains or losses.
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Calculate the relative tax advantage of debt.
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Given the base-case NPV of a project and give you two different firm investments… find the adjusted present value, APV.
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Given the amount of investment, after-tax returns, returns in year two, project life, cost of capital, borrowing rate, loan against project, installment amounts, and the debt tax shield amount…. calculate the adjusted present value.
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