ECN372 Corporate Finance 2‚ 2012/2013 Problem Set 5: Solutions 1. a) The face value of debt is given by: 0.5 × F + 0.5 × 40 = 60 ⇒ F = 80 The value of the firm is: V = 0.5 × 150 + 0.5 × 40 = 95 The value of equity is: E = 95 − 60 = 35 b) The value of debt: D = 0.5 × 50 + 0.5 × (20 − 10) = 30 The value of the firm is: V = 0.5 × 70 + 0.5 × (20 − 10) = 40 The value of equity is: E = 40 − 30 = 10 c) If the firms were to merge then: The value of debt: D = 0.5 × (80 + 50) + 0.5 × (40 + 70
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Homework 3 Due at 8:30 PM on Thursday October 18 on Elearning 1. Suppose that a firm’s production function is given by Q =F(K‚L) = 3K+2L . What is the marginal rate of technical substitution between capital and labor when K=3 and L=4? (The rate at which the firm can substitute between
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the factors that make people help others. Who helps the most‚ and in what cases (whom) are they especially likely to help? Illustrate your answer with examples. Giedrius Statkus Department of Psychology‚ Keynes College‚ CT2 7NP Identify some of the factors that make people help others. Who helps the most‚ and in what cases (whom) are they especially likely to help? Illustrate your answer with examples. Many different factors have been shown to influence people’s willingness to help others. The motive
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instance‚ financial service firms. (For Macintosh version) 5. dividends.xls: This program compares the dividends paid to what a firm could have paid‚ by estimating the free cash flow to equity (the cash flow left over after net debt payments‚ net capital expenditures and working capital investments.(For Macintosh version) 6. dcfval.xls: This program computes the value of equity in a firm using a two-stage dividend discount and FCFE model. (For more extensive choices on valuation‚ look at
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Robert Olen Dr. Katie Yates ENGL 2110 March 13‚ 2013 Poem Explication Expressed Emotions of Anne Bradstreet Over the Loss of a Young Life Anne Bradstreet was one of the first American poets; she was one of the first woman writers in the American Colonies‚ to be published. There are several examples throughout Bradstreet ’s poem "In Memory of My Dear Grandchild Elizabeth Bradstreet‚ Who Deceased August‚ 1665‚ Being a Year and a Half Old" that demonstrate Anne Bradstreet ’s love‚ sorrow‚ grief
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Gilson Christelle 13‚ Avenue Walckiers‚ 1160 Auderghem‚ Belgium Tel: +32496120463 e-mail : gilsonchristelle@hotmail.com Born Sept 02nd 1974‚ Single Summary: - European Market Development Manager. - European Technical and Development Manager for 4 plants producing 60000 tons of Polyethylen stretch film. - Second year International Executive Master Business Administration. - Team player with strong motivational skills‚ smiling. Professional Experience 02/2000 ( now Illinois
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dependent probabilistic situations and compare theoretical and experimental probability. You will practice displaying‚ summarizing‚ interpreting‚ and communicating univariate and bivariate data. Unit 5 Essential Questions ? ? How do different displays help you interpret data? Academic Vocabulary Add these words to your vocabulary notebook. categorical variables range experimental probability simple random sample (SRS) numerical data outlier theoretical probability Why is it important
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its capital structure‚ the higher that firm’s financial risk will be. e. The higher a firm’s tax rate‚ the less attractive debt capital will be to that firm. ii Which of the following statements is most FALSE? a. If a company does not have any debt‚ its DFL is 1. b. When a company is operating just barely above its breakeven point‚ the degree of operating leverage will most likely be low. c. The degree to which a firm employs financial leverage will affect its expected earnings per
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to seek for additional financial help in order to live a moderate live in America. Most families that are struggling with paying their rents or providing for their families are either on minimum wages or unemployed. This shows lack of security for those families or individuals that has expenses that must be covered. The outcome of Barbara Ehrenreich experiment reveals that working at minimum wage jobs does not match her earnings to her expenses. People need more money to make a living in a world of
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Be the manager question1: What kinds of organizing and controlling problems is Achieva suffering from? 1. Apparently Achieva is operating according to the scientific management which focuses on the work and tends to ignore the employees. The problem in Achieva is that the employees are not feeling appreciated when delivering the work perfectly. This could cause the workers to minimize the amount of effort they’re exerting‚ due to the lack of motivation by the managers. In addition to that‚ the
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