Questions from Corporate Finance


Q: FarCry Industries, a maker of telecommunications equipment, has two million

FarCry Industries, a maker of telecommunications equipment, has two million shares of common stock outstanding, one million shares of preferred stock outstanding, and 10,000 bonds. If the common share...

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Q: OMG Inc. has four million shares of common stock outstanding,

OMG Inc. has four million shares of common stock outstanding, three million shares of preferred stock outstanding, and 5,000 bonds. If the common shares are selling for $17 per share, the preferred sh...

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Q: FarCry Industries, a maker of telecommunications equipment, has two million

FarCry Industries, a maker of telecommunications equipment, has two million shares of common stock outstanding, one million shares of preferred stock outstanding, and 10,000 bonds. If the common share...

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Q: OMG Inc. has four million shares of common stock outstanding,

OMG Inc. has four million shares of common stock outstanding, three million shares of preferred stock outstanding, and 5,000 bonds. If the common shares are selling for $27 per share, the preferred sh...

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Q: FarCry Industries, a maker of telecommunications equipment, has two million

FarCry Industries, a maker of telecommunications equipment, has two million shares of common stock outstanding, one million shares of preferred stock outstanding, and 10,000 bonds. If the common share...

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Q: Suppose you were the financial manager for a firm and were considering

Suppose you were the financial manager for a firm and were considering a proposed increase in the amount of debt in the firm’s capital structure. If you thought the firm was going to consistently earn...

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Q: OMG Inc. has four million shares of common stock outstanding,

OMG Inc. has four million shares of common stock outstanding, three million shares of preferred stock outstanding, and 5,000 bonds. If the common shares sell for $17 per share, the preferred shares se...

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Q: Diddy Corp. stock has a beta of 1.2,

Diddy Corp. stock has a beta of 1.2, the current risk-free rate is 5 percent, and the expected return on the market is 13.5 percent. What is Diddy’s cost of equity?

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Q: WhackAmOle has two million shares of common stock outstanding, 1.

WhackAmOle has two million shares of common stock outstanding, 1.5 million shares of preferred stock outstanding, and 50,000 bonds. If the common shares are selling for $63 per share, the preferred sh...

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Q: TAFKAP Industries has three million shares of stock outstanding selling at $

TAFKAP Industries has three million shares of stock outstanding selling at $17 per share and an issue of $20 million in 7.5 percent, annual coupon bonds with a maturity of 15 years, selling at 106 per...

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