i humbky request anybody to help me with these questions and provide answers.
At the stated yield to maturity, what was a fair value as of December 17th2017(ex coupon price)? HOME DEPOT INC As of 17-Nov-2015 $1175.06$1000$1273.63$1292.55$1301.80 Northern Michigan Manufacturing, Inc. (NMM), has applied for a loan at Traverse City Credit Union. Their credit analyst, Mrs. Hockey, has gathered the following information from the NMM financial statements: Total assets =$260,000EBIT=$10,000 Net working capital =$5,000 Book value of equity =$40,000 Accumulated retained earnings =$20,000 Sales =$80,000 The stock price of NMM is $15 per share and there are 10,000 shares outstanding. What does the Altman Z-score of NMM indicate? NMM appears to be in the caution zone NMM will go bankrupt within the next year NMM appears to have a safe balance sheet NMM will not go bankrupt within the next year NMM appears to be in financial distress Assume that nations around the world begin to seriously consider treating alcohol much like the US treats tobacco. If implemented, this change would dramatically reduce the revenue of Diageo. To best prepare, would you recommend that Diageo PLC should do? Legislation involving alcohol applies more directly to another HBR Case in our course. Decrease the interest coverage ratio Do not change the interest coverage ratio Rather than worry about the interest coverage ratio, increase market share by acquiring competition in the beer and alcohol segments. Increase the interest coverage ratio Kalamazoo Moo-Moo Inc., is expected to produce $600,000 of EBIT annually forever. The company has a 15% unlevered cost of equity with a corporate tax rate of 21 percent. Kalamazoo Moo-Moo issued perpetual bonds that currently have a $3 million market value. You estimate that Kalamazoo Moo-Moo is worth: $3,790,000$474,000$1,104,000$3,160,000$2,530,000 Question 10 (1 point) Saved Which HBR case includes analysis of a firm that embraced the pecking order theory? Hank and Nancy in 2008 Snap Inc. in 2017 Continental Carriers in 1991 Diageo in 2000 The "pecking order theory" was not part of an HBR case we covered This company is attempting to find their optimal capital structure. The firm seems to be near the optimal level but a little more debt might increase firm value. Which HBR case does this best describe? Hank and Nancy in 2008 It does not describe any HBR case we covered Snap Inc. in 2017 Continental Carriers in 1991 Diageo in 2000 Question 2 (1 point) Saved You bought 600 of the 10000 outstanding shares of the Odessa Company one month ago. The board of directors declared a 12.5% stock dividend and today is the record date. The stock currently trades at $50 per share. How much does your wealth increase? $3000$12.50$3750$0$625 This company would almost certainly benefit from issuing debt with very little potential risk of financial distress. Which HBR case does this best describe? Continental Carriers in 1991 Hank and Nancy in 2008 Snap Inc. in 2017 None of the HBR cases we covered Diageo in 2000 Question 6 (1 point) Saved Buster Inc., operates in a volatile market characterized by an equal likelihood of good or bad years. In a good year, returns can be over 100% while bad years result in losses of more than 50%. Bronco Corp., operates in a consistent market with returns between 16 and 18 percent each year. Choose the most appropriate debt to equity ratios for Buster and Bronco respectively: Leverage is not relevant to either Buster or Bronco 0;00;1010;010;10 Tim Tardashian Company (TTC) suggested that their primary customer demographic should, "... get off your [expletives redacted] and work. Y'all are really lazy." Consequently, many customers just became former customers and TTC will remain in business for only one more year. TTC projects a 10 percent probability of generating a total cash flow of $200 million and a 90% probability of generating $50 million. TTC's required debt payment at the end of the year is $80 million. The market value of TTC's outstanding debt is $54 million. The company pays no taxes. What is the expected return on the debt of TTC? 1.9%48.1%42.6%27.0%29.0% What best explains the record 265 corporate defaults in 2009 as shown in the following figure and summary: Corporate defaults Dec 17 th 2011 I from the print edition Among the companies rated by Standard \& Poor's (S\&P), there have been just 44 corporate defaults around the world so far this year, down from 81 for the whole of 2010 and far below the record of 265 in 2009. Most are based in America (home to around half the companies followed by Sep). Seventeen of the defaults came from missed interest or principal payments, 11 from bankruptey filings and eight from distressed exchanges. Consumer-goods and services industries accounted for the most defaults, followed by transport (the latest bankruptcy filing was by AMR, the parent of American Airlines). After making up a quarter of all defaults in 2009, only five leisure and media companies have defaulted in 2011. High market value of equity Low interest rates Systematic shock Low leverage Unsystematic shock Your favorite pizza joint is being liquidated. The sales of all real estate netted $350,000 but the mortgage balance is $380,000. Equipment sales generated net proceeds of $62,000 while administrative costs, wages, benefits, and customer claims totaled $35,000. There are $17,000 in taxes due. Claims include $30,000 secured and $40,000 unsecured. How much money will the secured creditors receive? $30,000$3,000$23,000$0$10,000 Question 24 (1 point) Saved You bought 600 of the 10000 outstanding shares of the Odessa Company one month ago. The board of directors declared a 12.5% stock dividend and today is the record date. The stock currently trades at $50 per share. What will you receive? 3000 dollars 12500 shares 75 shares 3750 dollars 12 shares and $25 dollars Slava Ukraini is a company with three divisions. Segment Lviv has a beta =0.8, segment Kyiv with beta =1.5, and segment Kharkiv with beta =2.2. The overall WACC is 13% and the risk-free rate is 3%. The expected market risk premium is 8%. Which segments may include positive NPV projects when their IRR exceeds 12% ? None of the segments All of the segments Kyiv and Kharkiv segments Only one segment Lviv and Kyiv segments Question 15 (1 point) Saved Tim Tardashian Company (TTC) suggested that their primary customer demographic should, "... get off your [expletives redacted] and work. Y'all are really lazy." Consequently, many customers just became former customers and TTC will remain in business for only one more year. TTC projects a 10 percent probability of generating a total cash flow of $200 million and a 90% probability of generating $50 million. TTC's required debt payment at the end of the year is $80 million. The market value of TTC's outstanding debt is $54 million. The company pays no taxes. What rate of return is promised on the debt of TTC? 27.0%29.0%1.9%48.1%42.6% Gordon Corp. has 8,000 shares of stock outstanding, has a zero percent effective tax rate, and the following Market Value Balance Sheet: The company has declared a dividend of $4 per share. After the stock goes exdividend tomorrow, what should it sell for? $64.75$58.75$20.75$62.75$68.75 Maple, Inc., proposes a rights offering. Presently, there are 500,000 shares outstanding at $40 each. There will be 125,000 new shares offered at $36 each. What is the value of a right? $1.25$36$0.80$4.00 $0 Question 8 (1 point) Saved The executives of this company and the underwriters have a strong incentive to inflate revenue growth estimates. Which HBR case does this describe? Continental Carriers in 1991 No HBR case we covered includes a strong incentive to inflate revenue growth estimates Hank and Nancy in 2008 Snap Inc. in 2017 Diageo in 2000 The Dnieper Company has 10,000 shares outstanding and had a net income of $50,000 last year. It has market value of equity and book value both equal to $1 million. It has $250,000 of excess cash and $750,000 in other assets. If the company uses all excess cash to repurchase shares, how many shares will be outstanding? 9500 shares 10000 shares 7500 shares 2500 shares 0 shares Question 4 (1 point) The equity of Liberty PLC is as follows: If Liberty PLC stock trades for forty dollars per share and a five percent stock dividend is declared, how many new shares will be distributed? 800040002000016000 Winchell Co. and Parkview Co. both announce an IPO at $40 per share. One company is undervalued by 20% and the other is overvalued by 10%. Unfortunately, you do not know which one is a bargain. You intend offer to purchase 1000 shares of each company. However, if the issue is underpriced, you will only receive a rationed allotment of 500 shares. What profit do you expect? $4000$800$0$2000$800 Firm A plans to acquire firm B by offering to purchase all outstanding shares at a 20% merger premium. Firm A will finance the acquisition by issuing bonds. Determine the total assets of the combined company using the purchase accounting method. $1,280,000$2,980,000$480,000$1,900,000$1,980,000 Tim Tardashian Company (TTC) suggested that their primary customer demographic should, "... get off your [expletives redacted] and work. Y'all are really lazy." Consequently, many customers just became former customers and TTC will remain in business for only one more year. TTC projects a 10 percent probability of generating a total cash flow of $200 million and a 90% probability of generating $50 million. TTC's required debt payment at the end of the year is $80 million. The market value of TTC's outstanding debt is $54 million. The company pays no taxes. What do the TTC bondholders expect to receive under the 90% probability scenario? \$65 million $50 million $62 million $90 million $95 million Klingon Cruisers, Inc., purchased new cloaking machinery four years ago for $85 million. The machinery can be sold to the Romulans today for $49 million. Klingon's current balance sheet shows net fixed assets of $35 million, current liabilities of $2.8 million, and net working capital of $1.2 million. If all the current accounts were liquidated today, the company would receive $3.8 million cash. What is the book value of Klingon's assets today? $39.0 million $38.8 million $50.2 million \$36.2 million $37.8 million The owners of Yip Company common equity and Ling Corporation common equity approved a merger. Information about each firm is given here: The Yip common equity owners will receive one share of Ling stock for every five shares they hold in Yip. What are the expected EPS of the combined company? $3.53$3.44$3.06$1.83$2.51