BFN203 CORPORATE FINANCE: IN-CLASS PRACTICE EXAM There are 100 outstanding shares, selling at $25 each. Additional information is available: Expected capital gain yield 3,00% BETA 0,80 RISK-free rate 1,50% Market risk premium 6,00% Bankruptcy costs (% of assets) 10,00% Unlevered cost of equity 5,27% Corporate tax rate 34,00% Cash Inventory A/R Current assets GFA Accumulated depreciation NFA $100,00 $500,00 $400,00 $1 000,00 $3 000,00 -$1.000,00 $2 000,00 $500,00 $3 500,00 Other assets Total assets A/P N/P Current liabilities LTD Total liabilities Outstanding shares Sales Costs Depreciation EBIT $300,00 $400,00 $700,00 $1 500,00 $2 200,00 $1 120,14 $5 000,00 -$3 500,00 -$1 000,00 $500,00 -$80,75 $419,25 -$ 142,55 $276,71 $96,85 $179,86 $179,86 $1 300,00 $3 500,00 Interest EBT Tax on profits NI Dividend Addition to RE Accumulated RE Equity Total L&E 12. The value of the all-equity firm is: a. $8.456.27 b. $14,523.61 c. $14,873.61 d. $14,921.61 e. None of the above BFN203 CORPORATE FINANCE: IN-CLASS PRACTICE EXAM There are 100 outstanding shares, selling at $25 each. Additional information is available: Expected capital gain yield 3,00% BETA 0,80 RISK-free rate 1,50% Market risk premium 6,00% Bankruptcy costs (% of assets) 10,00% Unlevered cost of equity 5,27% Corporate tax rate 34,00% Cash Inventory A/R Current assets GFA Accumulated depreciation NFA $100,00 $500,00 $400,00 $1 000,00 $3 000,00 -$1.000,00 $2 000,00 $500,00 $3 500,00 Other assets Total assets A/P N/P Current liabilities LTD Total liabilities Outstanding shares Sales Costs Depreciation EBIT $300,00 $400,00 $700,00 $1 500,00 $2 200,00 $1 120,14 $5 000,00 -$3 500,00 -$1 000,00 $500,00 -$80,75 $419,25 -$ 142,55 $276,71 $96,85 $179,86 $179,86 $1 300,00 $3 500,00 Interest EBT Tax on profits NI Dividend Addition to RE Accumulated RE Equity Total L&E 12. The value of the all-equity firm is: a. $8.456.27 b. $14,523.61 c. $14,873.61 d. $14,921.61 e. None of the above