Advanced Corporate Finance Exam 2

Hw 15 Hw 16 Quiz 3 (15 &16) Hw 17 Practice 15 Practice 16 Practice 17 Practice 18 Quiz 4

181.3

32.11

13.34

19.53

51.45

the present value of the interest tax shield

9.35

.13

16.67

15.88

80.92

34.96

632.8

96.66

103.23

8.77

7.6

60

9.48

.33

48.57

228.57

debt overhang

71.43

310

291.95

pecking order hypothesis

5.21

23.24

11.43

14.32

107.81

13.54

ex dividend

dutch auction share repurchase

38.53

70.91

1.29

12.22

231.04

46.67

.17

33.19

7.52

the investors tax rate on interest income

15.18

78.59

150.63

33

33 million

0 (ebit does not change with a change in interest exp)

195 mil

13 %

the present value of the interest tax shield

1.47 mil

11%

100 mil

10.51%

107 mil

21 mil

70 mil

15.4%

100 mil

108.4 mil

$ .13

42 mil

642 mil

442 mil

-4.9%

14.25 bil

15%

140 mil

12.5%

6.3 mil

60 mil

70 mil

$10.84

.225

1 and 4 only

22.5 mil

36 mil

210 mil

55%

55%

300 mil

295 mil

5 mil

19

50 mil

450 mil

4

45

40

1.1 mil

8.9 mil

278

20

25%

36%

25%