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Saint Nick Enterprises has 16,500 shares of common stock outstanding at a price of $64 per share. The company has two bond issues outstanding. The first issue has10 years to maturity, a par value of $1,000 per bond, and sells for96.5 percent of par. The second issue matures in 24 years, has a par value of $2,000 per bond, and sells for 104 percent of par. The total face value of the first issue is $200,000, while the total face value of the second issue is $300,000. What is the capital structure weight of debt?

A project with an initial cost of $74,500 is expected to generate annual cash flows of $16,800 for the next 8 years. What is the project’s internal rate of return?

Which one of the following credit instruments is commonly used in international commerce?

The key means of defending against forecasting risk is to:

Humberto is fairly cautious when analyzing a new project and thus he projects the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. Which type of analysis is he using?

You recently purchased a stock that is expected to earn 10 percent in a booming economy, 4 percent in a normal economy, and lose 4 percent in a recessionary economy. There is 15 percent probability of a boom, 70 percent chance of a normal economy, and 15 percent chance of a recession. What is your expected rate of return on this stock?

Pear Orchards is evaluating a new project that will require equipment of $223,000. The equipment will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company plans to shut down the project after 4 years. At that time, the equipment could be sold for $50,200. However, the company plans to keep the equipment for a different project in another state. The tax rate is 21 percent. What aftertax salvage value should the company use when evaluating the current project?

Suppose you observe the following situation: Security Beta Expected Return A 1.16 .1137 B .92 .0984 Assume these securities are correctly priced. Based on the CAPM, what is the return on the market?

Mojo Mining has a bond outstanding that sells for $2,138 and matures in 16 years. The bond pays semiannual coupons and has a coupon rate of 6.82 percent. The par value is $2,000. If the company’s tax rate is 21 percent, what is the aftertax cost of debt?

When the British fought the Spanish and French in the era of 1740 to 1763, most slaves and eastern land Native Americans