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The first column of drop down menus give you the option of selecting either buy or sell the second column of drop down menus give

The first column of drop down menus give you the option of selecting either buy or sell
the second column of drop down menus give you the option of selecting either ABC or XYZ image text in transcribed
image text in transcribed
image text in transcribed
of $900 or $1,300 each year, Afer paying any interest on debt, both companies use all remaining free cash flows to pay dividends each year. a. In the table below, fil in the debt payments and equity dividends each firm will receive given each of the fwo poss blo levels of free cash fows. b. Suppose you hold 10% of the equity of ABC. What is another portfolio you could hold that would provicte the same cash flows? c. Suppose you hold 10% of the equity of XYZ. If you can borrow at 9%, what is an allernative strategy that would provide the same cash flows? a. In the tatie below, sil h the poyments debs and equity holden of each firm will recelve given each of the tho possblo levols of free cash flows. (Fround to the nearest dollar) b. Suppote you hold 10% of the equity of ABC. What is another pertfolio you could hoid that would provide the same cash flow? (Seloct from the drop down menus and round to the nearest integer) nearest inleger) b. Suppose you hold 10% of the equity of ABC. What is another portfolio you could hold that would provide the sam % of debt, and equity. Buy hold 10% of the equity of XYZ. If you can borrow at 9%, what is an alternative strategy that would Sell debt, and % of equity. b. Suppose you hold 10% of the equity of ABC. What is another portfolio you could hold that would provide the same ca % of debt, and % of c. Suppose you nearest integer. XYZ equity of XYZ. If you can borrow at 9%, what is an alternative strategy that would provid % of ABC % of equity

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