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ineed help -5000 changes to working capital - capital expenditures -5000 10,000 -90.000 6) 6) Epiphany would like to know how sensitive the project's NPV

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-5000 changes to working capital - capital expenditures -5000 10,000 -90.000 6) 6) Epiphany would like to know how sensitive the project's NPV is to changes in the discount rate. How much can the discount rate vary before the NPV reaches zero? A) 19.14% B) 12.0% C) D) 7.14% Use the following information to answer the question(s) belote. Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion. It also has $750 million in debt outstanding, Galt Industries has decided to delever the firm by issuing new equity and completely repaying all the outstanding debt. Assume perfect capital markets. 7) The number of shares that Galt must issue is closest to: A) 25 million B) 30 million C) 15 million D) 40 million Use the following information to answer the question(s) below. d'Anconia Copper is an all-equity firm with 60 million shares outstanding, which are currently trading at $20 per share. Last month, d'Anconia announced that it will change its capital structure by issuing $300 million in debt. The $200 million raised by this issue, plus another $200 million in cash that d'Anconia already has, will be used to repurchase existing shares of stock. Assume that capital markets are perfect. 8) 8) The market capitalization of d'Anconia Copper after this transaction takes place is closest to A) $900 million B) $1200 C) $800 million D) $1100 million million 9) Which of the following is NOT an advantage of a sole proprietorship? A) Ease of setup B) Limited liability C) Single taxation D) No separation of ownership and control

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