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Can i get solutions and answers for the following questions in the attachment? Question 1.1. (TCO C) Taggart Transcontinental has announced a $2 dividend. If

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Can i get solutions and answers for the following questions in the attachment?

image text in transcribed Question 1.1. (TCO C) Taggart Transcontinental has announced a $2 dividend. If Taggart's last price cum-dividend is $45, then, assuming perfect capital markets, what should its first ex-dividend price be? A) $0 B) $2 C) $43 D) $45 (Points : 1) Question 2.2. (TCO B) Which of the following statements is FALSE? A) The relative proportions of debt, equity, and other securities that a firm has outstanding constitute its capital structure. B) The most common choices are financing through equity alone and financing through a combination of debt and equity. C) A project's earnings represents the value to the new investors of the firm created by a project. D) When corporations raise funds from outside investors, they must choose which type of security to issue. (Points : 1) Question 3.3. (TCO C) Pate & Co. has a capital budget of $3,000,000. The company wants to maintain a target capital structure that is 15% debt and 85% equity. The company forecasts that its net income this year will be $3,500,000. If the company follows a residual dividend policy, what will be its total dividend payment? (a) $205,000 (b) $500,000 (c) $950,000 (d) $2,550,000 (e) $3,050,000 (Points : 1) Question 4.4. (TCO F) You bought a put option on ABC stock with a strike price of $22. If the stock is trading at $25 at the expiration date, what is the payoff or the amount you owe? For full credit, you must indicate whether the exercise value is a payoff or amount owed, if applicable. (Points : 1) Question 5.5. (TCO A) XYZ company stock has a current stock price of $42 per share. The company does not pay dividends. The stock has a volatility of 25 percent. The risk-free rate is 4 percent and the expected return of the stock is 8.25 percent. Assuming a strike price of $40, determine the one-year Black-Scholes value of the related call option. (Points : 1) Question 6.6. (TCO F) ABC's convertible debentures were issued at their $1,000 par value in 2014. At any time prior to maturity on January 1, 2034, a debenture holder can exchange a bond for 50 shares of common stock. What is the conversion share price per convertible bond? (Points : 1) Question 7.7. (TCO B) ABC Enterprises has a levered beta of 1.30, its capital structure consists of 25% debt and 75% equity, and its tax rate is 35%. What would ABC's beta be if it used no debt, that is, what is its unlevered beta? (Points : Question 8.8. (TCO B) Firm Z has debt with a market value of $500,000 and a yield of 7%. The firm's equity has a market value of $400,000, its earnings are growing at a rate of 6%, and its tax rate is 35%. A similar firm with no debt has a cost of equity of 106%. Under the MM extension with growth, what is the firm 's cost of equity? (Points : 1)

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