Finance

Jack’s Construction Co. has 80,000 bonds outstanding that are selling

Jack’s Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.5 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4 percent and the […]

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Date: September 19th, 2020

Fury Motor Corp is all equity financed and generates perpetual annual

Fury Motor Corp is all equity financed and generates perpetual annual EBIT of $300. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that Fury has a 100% payout rate, 1,500 shares outstanding, and that shareholders require a return […]

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Date: September 19th, 2020