ckens is a corporate raider. This means that he looks for companies that are not hem, and then tries to operate them at higher profits. T-bone from studying agricultural economics at the School Exercise 7. T-bone Pickens. [15] maximisi elaims that he learned his methods ot Animal Husbandry where they taught him to "buy sheep and sell deer. ng profits, buys t 13 ds to find nuesWhether the company is maximising profits. He knows that Capon has the following He is considering a bid for a local trucking company, Capon Truckin', but he nee investment opportunities: Project Initial cost Annual cash flow $ 20 mill 40 mill 0 mill 24 mill 20 mill $20 mill 50 mill 100 mill 150 mill 200 mill The cash reserves of the firm is $320 mill. The annual cash flows above are perpetual. Capon's opportunity cost of capital is 20%. Cur rent management of Capon plans to borrow an additional $ 200 mill from the bank to invest in all five projects. The loan s perpetual anod will carry a 20% interest rate. (a) What is the value of the firm's common stock with the managements investment plans