PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Textbook Question
Chapter 9, Problem 1PS
Definitions Define the following terms:
- a. Cost of debt.
- b.
Cost of equity . - c. After-tax WACC.
- d. Equity beta.
- e. Asset beta.
- f. Pure-play comparable.
- g. Certainty equivalent.
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Chapter 9 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 9 - (VAR.P and STDEV.P) Choose two well-known stocks...Ch. 9 - (AVERAGE, VAR.P and STDEV.P) Now calculate the...Ch. 9 - (SLOPE) Download the Standard Poors index for the...Ch. 9 - Definitions Define the following terms: a. Cost of...Ch. 9 - True/false True or false? a. The company cost of...Ch. 9 - Company cost of capital Quark Productions (Give...Ch. 9 - Company cost of capital The total market value of...Ch. 9 - Company cost of capital You are given the...Ch. 9 - Company cost of capital Nero Violins has the...Ch. 9 - WACC A company is 40% financed by risk-free debt....
Ch. 9 - WACC Binomial Tree Farms financing includes 5...Ch. 9 - Prob. 10PSCh. 9 - Measuring risk The following table shows estimates...Ch. 9 - Prob. 12PSCh. 9 - Asset betas Which of these projects is likely to...Ch. 9 - Asset betas EZCUBE Corp. is 50% financed with...Ch. 9 - Prob. 15PSCh. 9 - Prob. 16PSCh. 9 - Prob. 17PSCh. 9 - Fudge factors John Barleycorn estimates his firms...Ch. 9 - Prob. 19PSCh. 9 - Prob. 20PSCh. 9 - Certainty equivalents A project has a forecasted...Ch. 9 - Certainty equivalents A project has the following...Ch. 9 - Prob. 23PSCh. 9 - Beta of costs Suppose that you are valuing a...Ch. 9 - Fudge factors An oil company executive is...
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- Define cost of equity? How does it relate to the ‘required rate of return’ (r) on equities?arrow_forwardDebt-equity ratio is a sub-part of Select one: a. Liquidity ratio b. Solvency ratio c. Profitability ratio d. Efficiency ratioarrow_forwardWhich of the following ratios is most useful in evaluating liquidity? ed d out of g ion • A. Return on assets. O B. Debt to equity ratio. C. Return on equity/capital O D. Current ratio.arrow_forward
- a. What is debt management ratio? b. What is profitability ratio?arrow_forwardCarrying amounts in a GAAP balance sheet are measured using all the following except: Multiple Choice historical cost. net realizable value. discounted present value. projected ROI.arrow_forwardPlease explain in detailarrow_forward
- The two main approaches to equity analysis are the relative valuation models and…a. The discounted earnings models.b. The depreciated cash-flow models.c. The discounted cash-flow models.d. The depreciated capital models.arrow_forward1. The CAPM model can be used to derive the cost of сapital. A. Equity B. Borrowed C. Total D. Unlimitedarrow_forwardBased on the Liquidity ratio, which ratio determine stability, earning power and capital? Explain the formula and its impact & importance. Choose one only.arrow_forward
- Which are valid methods for finding the cost of equity? Check all that apply: 1. The dividend discount model approach 2. The perpetuity approach 3. The YTM approach 4. The CAPM or SML approacharrow_forwardOther than CAPM what other model can be used in valuing equity and WACC. Also list the assumptions of this modelarrow_forwardDescribe the process of determining the Cost of Equity?arrow_forward
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