1. executive chalk is financed solely by common stock and has outstanding 25m shares with a market price of $10 per share. it now announces that it intends to issue $160m old debt and to use the proceeds to buy back common stock (from brealey, myers, and allen.) a. how is the market price of the stock affected by the announcement? b. how many shares can the company buy back with the $160m of new debt that it issues? c. what is the market value of the firm (equity plus debt) after the change in capital structure? d. what is the debt ratio (d/e) after the change in structure? e. who (if anyone) gains or loses?

Payday loans could be considered as a. illegal b.subprime lending c. good deal for borrower d. for frequent use

Bear, inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. they have, and desire, a 25% ending inventory of finished goods. each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. the remainder is received in the quarter following sale. cash collections for the third quarter are budgeted at

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above