For the situation described below, (1) list the threat to st…

For the situation described below, (1) list the threat to statistical conclusion validity that is present due to the researcher’s actions (low power or high Type 1 error rate)  and (2) state why the threat exists.    A researcher had difficulty in finding a sufficient number of participants for his study and is concerned about the effects of this on the results of the study.    

The following information has been presented to you about th…

The following information has been presented to you about the Gibson Corporation.   Total assets $3,000 million Tax rate 40% Operating income (EBIT) $800 million Debt ratio 0% Interest expense $0 WACC 10% Net income $480 million M/B ratio 1 Share price $32.00 EPS = DPS $3.20 The company has no growth opportunities (g = 0), so the company pays out all of its earnings as dividends (EPS = DPS). The consultant believes that if the company moves to a capital structure financed with 20% debt and 80% equity (based on market values) that the cost of equity will increase to 11% and that the pre-tax cost of debt will be 10%. If the company makes this change, what would be the total market value (in millions) of the firm?