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Question 4 You have the following information about a company - Assets (book value) $100M - Liabilities (book value): $75M Value realized by selling assets:

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Question 4 You have the following information about a company - Assets (book value) $100M - Liabilities (book value): $75M Value realized by selling assets: $90M Cost of repaying debt $75M - Price per share: $300 - Number of shares outstanding: 100,000 Match the types of value with their dollar amounts. Liquidation value A $10M Market value B. $25M v Book value C. $30M D. $15M Question 5 1 points Save Before concluding that a very high P/E ratio is caused by irrational investors that push the price too high, what rational factors can you consider? (Check all that apply Each correct answer gives partial credit and each incorrect answer reduces partial credit) Earnings are close to zero A high discount rate is used when valuing the company Earnings are artificially low because of one time events ike the Covid lockdown The firm is expected to grow earnings at a rapid pace uestion 6 Which of the following statements is true about the bonds in the table below? Bond Bond A Bond B Bond C Bond D Coupon rate Yield-to-maturity 4% 2% 2% 3% 5% 2.5% 3% 2% The realized return of Bond B will be at least 3% as long as interest rates do not decrease before the bond matures. The realized return of Bond A will be at least 4% as long as interest rates do not decrease before the bond matures Interest rates have increased since Bond A was issued Among the funds in the table, Bond C is the one with the highest expected return

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