Wyatt Oil issued $200 million in perpetual debt (at par) wit…

Wyatt Oil issued $200 million in perpetual debt (at par) with an annual coupon of 7%. Wyatt will pay interest only on this debt. Wyatt’s marginal tax rate is expected to be 40% for the foreseeable future.  Wyatt’s annual interest tax shield and the present value of interest tax shield are close to _____ respectively:   

Suppose that in the coming year, you expect BP stock to have…

Suppose that in the coming year, you expect BP stock to have a volatility of 32% and a beta of 0.8, and Merck’s stock to have a volatility of 22% and a beta of 1.2.  The risk free interest rate is 5% and the market’s expected return is 14%. The cost of capital for a project with the same beta as BP’s stock is closest to:

A block of mass m = 3.0 kg is attached to a cord, which in t…

A block of mass m = 3.0 kg is attached to a cord, which in turn is wrapped around a pulley of mass M = 2 kg and radius R = 5 cm that has the form of a hollow cylinder. Find the speed of the block when the block falls 2 m. (Note: The moment of inertia for a disc is I = 2/5MR2)