I need help to review the answers of these financial questions, can someone help so I can compare?

Question #1 Capital structure and unlevered Beta Estimates for comparable firms? Firm Oakley Luxottica Nike E E +D 1.00 0.83 1.05 D E +D 0.00 0.17 -0.05 B E 1.50 0.75 0.60 B D ---0 0 B U 1.50 0.62 0.63 The unlevered beta Oakley closes: a. 1.00 b. 0.60 c. 1.50 d. 0.70 Question #2 Which of the statements is false? a. The first step in the FTE method is to determine the projects for ach flow to equity (FCFE) b. In the flow-to-equity (FTE) valuation method, we explicitly calculate the free cash flow available to equity holders taking into account all paychecks to and from debt holders. c. In the flow-to-equity validation method, the cash flows to equity holders are then discounted using the weighted average cost of capital. d. In the WACC and APV methods, we value a project based on its free cash flow, which is computed ignoring interest and debt payments. Question #3 If managed effectively Rearden Metal will have assets with a market value of $200 million, $300 million and $400 million next year, with each outcome being equally likely. Managers, however may decide to engage in wasteful empire building, which will reduce Rearden's market value by $20 million in all cases. Managers may also increase the risk of the firm changing the probability of each outcome to 30%, 5% and 45% respectively. a. b. c. d. $300 million $265 million $295 million $280 million Question #4 Nielsen Motors (NM) has no debt. Its assets will be worth $600 million in one year if the economy is strong but only $300 million if the economy is weak. Both events are equally likely. The market value today of Nielsen's assets is $400 million. The expected return for Nielsen Motors stock without leverage is closest to: a. b. c. d. -12.5% -17.5% 12.5% -25.0% Question #5 Consider the following formula a. b. c. d. The effective corporate tax rate on income The effective personal tax rate on interest occur The effective personal tax rate on equity The effective tax advantage of debt Question #6 Anconia Copper has $200 million in cash that it can use for a share repurchase. Suppose instead that of Anconia Copper invests the funds in an account paying 5% interest for one year. Assume that the corporate tax rate 35% the individual capital gains rate is 15% and the individual rate on ordinary income is 30%. The amount of additional cash that of Anconia Copper will have at the end of the year net of corporate taxes is closest to a. $7.0 million b. $5.5 million c. $2.0 million d. $6.5 million Question #7 Monsdt Incorporated (MI) is ready to launch a new product. Depending upon the success of this product MI will have a value of either $100 million or $191 million, with each equally likely. The cash flows are correlated to the state of the economy (i.e. risk from the project is diversifiable) so that h project had a beta of O and a cost of a capital equal to the risk -free, which is currently 5%. Assume that the capital markets are perfect. Suppose that MI has zero-coupon debt with a $125 million face value due next year. The initial value of MI's equity is closest to: a. $15 million b. $24 million c. $29 million d. $30 million Question #8 Which of the following is not one of the signifying assumptions made for the three main methods of capital budgeting. a. The project has average risk b. The firms debt -equity ratio is constant c. Corporate taxes are the only market imperfection. d. The firm pays out all earnings as dividends. Question #9 Taggart Transcontinental shares are currently trading at $200 per share. The split ratio need to brink the stock price down to $80 is: a. 2.5 b. 5.2 c. 3.1 d. 2.1 e. (14) Assume that the economy had three type of people, 20% are fad followers, 75% are passive investors, and 5% are informed traders. The portfolio consisting of all informed traders has a beta of 1.4 and an expected return of 16%. The market has an expected return of 10% and the risk-free rate is 4%. a. 0.08% b. -0.9% c. 3.6% d. -2.4% Question #10 Estimated 2005 Income statement and Balance o Corporation Sheet Data for Ideko Corporation Year Income Statement ($ 000) 1. Sales 2. Cost of Goods sold 3. Raw Materials 4. Direct Labor Costs 5. Gross Profit 6. Sales on Marketing 7. Administrative 8. EBITDA a. b. c. d. $165 million $195 million $155 million $157 million 2005 75,000 $ $ $ $ (15,000) (18,000) 1,000 (11,250) (13,500) 16,250 2005 Balance Sheet ($ 000) Year Assets 1. Cash & Equivalents 2. Accounts Receivable 3. Inventories 4. Total Current Assets 5. Property, Plant, and Equity 6. Goodwill 7. Total Assets 12,664 18,493 6,165 37,322 49,500 ------86,822 Question #11 Omicron Industries market value Balance Sheet ($ millions) and cost of capital Assets Cash Costs of Capital Liabilies 0 Debt $ 500.00 Other Assets 200 Debt Equity 300 equity r Omicron Industries New Project Free Cash Flows Year Fresh Cash Flows a. b. c. d. $55.25 $33.00 $38.75 $22.00 0 ($100) 1 $40 2 $50 3 $60 6% 12% 35%