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Assume the market value of JNJ’s equity, preferred stock and debt are $25 billion, $5 billion and $10 billion respectively. JNJ has a beta of .8, the market risk premium is 6% and the risk-free rate of interest is 4%. JNJ’s preferred stock pays a dividend of $3 each year and trades at a price of $25 per share. JNJ’s debt trades with a yield to maturity of 8.5%. What is JNJ’s weighted average cost of capital if its tax rate is 35%?

Assume Time Warner common equity shares have a market capitalization of $40 billion. The company is expected to pay a dividend next year of $0.25 per share and each share trades for $40. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 9%. If the firm’s tax rate is 40%, what is the WACC?

Inner joins may produce _________________________ than natural joins.

Which of the following statement is true regarding primary and foreign keys?

Please see the following attachment for problem statements and upload your solutions. Mark your answers with red and bold fonts to make grading easier. exam2-SA-Q1.docx 

Complete the following reaction and provide a detailed, step-by-step mechanism for the process.

Give the major product for the following reaction:

A nurse is educating a patient with a new temporary ileostomy. Which of the following statements from the patient indicates an understanding of the teaching?

A feasibility study is conducted to determine:

PART II:  Multiple choice questions