Chapter 7 Questions
Question 6
| Question 6 | |||||
| a | class A stock | Class A share price | Class B stock | Class B share price | Value of Equity |
| 50,000 | 100 | 100,000 | 90 | 14000000 | |
| b | Value of debt | Value of equity | Debt ratio | ||
| 5,000,000 | 14,000,000 | 0.263157895 |
For an original copy of “Chapter 7 Questions”, reach out to us at eminencepapers.com
Question 11
| Question 11 | ||||||||||||
| Expected Market Return by using SML of CAPM = Risk-Free Rate + Market Risk Premium (Beta) | ||||||||||||
| Risk-free rate | Riskless Rate | Beta | Expected Market Return | |||||||||
| 7% | 6.50% | 1.1 | 14.1500% | |||||||||
| Expected return = risk-free rate + market risk premium (beta) + expected value of size factor(coefficient for size effect) + book-to-market factor (coefficient for book-to-market effect) | ||||||||||||
| Risk-Free Rate | Riskless rate | Beta | Expected value size factor | The coefficient for the size effect | Book to market Factor | The coefficient for book market effect | ||||||
| 7% | 6.50% | 1.1 | 5% | 0.7 | 4% | -0.3 | 16.45% | |||||
Question 12
| Question 12 | |||
| Outstanding shares | Share Price | Value of shares at offering Price | |
| 50,000,000 | $ 22.00 | $ 1,100,000,000.00 | |
| Outstanding shares | Stock market price | Value of shares at market price | |
| 50,000,000 | $ 40.00 | $ 2,000,000,000.00 | |
| Value of shares at market price | Value of shares at offering Price | ||
| $2,000,000,000.00 | $1,100,000,000.00 | $900,000,000.00 |
Similar Post: MBA Reflection
References
Damodaran, A. (2010). Applied corporate finance. John Wiley & Sons.
ORDER A PLAGIARISM-FREE PAPER HERE
We’ll write everything from scratch
Question 
Week 6 Chapter 7 Questions
Select three formula-driven problems from Chapter 7 that you wish to showcase and prepare a Microsoft Excel document showing the Excel formulas used to prepare the solution for those problems.
Chapter 7 Questions
REMINDER: Part of the grade you receive on your problems is the utilization of Formulas. Therefore, do not pick issues that only require a narrative!
Textbook:
Damodaran, A. (2010). Applied corporate finance. John Wiley & Sons.
Complete the order form and upload all of your files, including any instructions, rubrics, or other materials provided by your instructor. 
Complete the order payment after filling in the order form. We’ll receive your order and assign it to a writer.
The assigned writer will complete your paper and forward it to our Editing Team for review and approval.
Once approved by the editor, the completed paper will be uploaded to your account for you to download, review and approve.