Questions from Corporate Finance


Q: Complete the following balance sheet for the post‐merger firm B

Complete the following balance sheet for the post‐merger firm B‐T. The bidder acquired the target for $8,000 in cash.

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Q: Java Cafe’s tax rate is 45 percent and the appropriate discount rate

Java Cafe’s tax rate is 45 percent and the appropriate discount rate is 8 percent. It is considering another project. Each asset class consists only of the project asset and will be terminated at the...

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Q: Java Cafe’s tax rate is 40 percent and the appropriate discount rate

Java Cafe’s tax rate is 40 percent and the appropriate discount rate is 12 percent. It is considering another project. Each asset class consists only of the project asset and will be terminated at the...

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Q: KRZ Company has hired you to help evaluate several projects. The

KRZ Company has hired you to help evaluate several projects. The firm ’ s tax rate is 40 percent and the appropriate discount rate is 10 percent. Each asset class is small and will be terminated at th...

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Q: KRZ Company has hired you to help evaluate several projects. The

KRZ Company has hired you to help evaluate several projects. The firm’s tax rate is 40 percent and the appropriate discount rate is 15 percent. Each asset class is small and will be terminated at the...

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Q: You are trying to decide whether or not to go to graduate

You are trying to decide whether or not to go to graduate school. If you get a job right after you get your bachelor’s degree, you expect to earn $40,000 a year, and you expect your salary to increase...

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Q: Briefly discuss the possible motivation for firms to enter into IPOs,

Briefly discuss the possible motivation for firms to enter into IPOs, and relate these motivations to the five stages of firm development discussed by Myers (1999).

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Q: You are trying to decide whether to continue renting an apartment or

You are trying to decide whether to continue renting an apartment or to buy a house. In 20 years, you plan on leaving Canada and moving to a warm tropical island and would like to have as much money a...

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Q: Brigid Co. has the following potential project: Machine price =

Brigid Co. has the following potential project: Machine price = $1,800,000; additional inventory requirement = $150,000. Cash flows will be generated at year end. Rev1 = $400,000 and grows at 5 percen...

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Q: Calculate the NPV in Practice Problem 45 assuming a best case of

Calculate the NPV in Practice Problem 45 assuming a best case of the following: project life = 10 years; project beta = 0.8; SVn = $100,000; Rev1 = $500,000.

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