公司理财Submision to ch16-17.docVIP

Submission to?Ch16-17 窗体顶端 Your saved submission... Student:?朱, 喜?Score:?98 out of 102 (96%)Date:?06/07/2015 20:58Duration:?* 2:11:01 *Workstation:?172.19.166.8 (2)??? 1. A firm has zero debt in its capital structure. Its overall cost of capital is 9%. The firm is considering a new capital structure with 40% debt. The interest rate on the debt would be 4%. Assuming that the corporate tax rate is 34%, what would the cost of equity capital with the new capital structure be? 11.2% 10.3% None of these. 11.0% 13.9% Rs = Ro + (B/S)(1 - Tc)( Ro - rB )Rs = .09 + (.4/.6) (1 - .34) (.09 - .04) = .09 + .022 = .112 = 11.2% (2)??? 2. The optimal capital structure: is unaffected by changes in the financial markets. will remain constant over time unless the firm makes an acquisition. of a firm will vary over time as taxes and market conditions change. will be the same for all firms in the same industry. places more emphasis on the operations of a firm rather than the financing of a firm. (2)??? 3. The unlevered cost of capital is: the cost of capital for a firm with no equity in its capital structure. equal to the profit margin for a firm with some debt in its capital structure. the cost of capital for a firm with no debt in its capital structure. the interest tax shield times pretax net income. the cost of preferred stock for a firm with equal parts debt and common stock in its capital structure. (2)??? 4. The pecking order states how financing should be raised. In order to avoid asymmetric information problems and misinterpretation of whether management is sending a signal on security overvaluation, the firms first rule is to: always issue debt then the market wont know when management thinks the security is overvalued. issue new equity first. None of these. issue debt first. finance with internally generated funds. (2)??? 5. Thompson Thomson is an all equity firm that has 500,000 shares of stock outstanding. The company is in the process of