You are considering buying Goggle stock and see the beta is 1.75, the risk-free rate is 3%, and the expected return on the market is 8%.  What is the required return on Goggle?

Benefactor Cumbersome has $25 million in debt with a cost of 4%, $5 million in preferred stock with a cost of 6%, and $30 million in equity with a cost of 10%.  If the tax rate is 21%, the weighted average cost of capital is closest to:

When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the ________ of the investment. If we express it in terms of dollars in the future, we call it the ________.

You are considering buying Goggle stock and see the beta is 1.25, the risk-free rate is 3%, and the expected return on the market is 8%. What is the required return on Goggle?

Because depository institutions are funded by small investments (such as checkings and savings of individuals), they face less regulation than those funded by larger investments.

Credit Unions are not considered depository institutions because they have members instead of customers.

Financial Institutions transform funds by term, risk, and size.

In the video about markets and institutions, Professor Moser discussed a transaction between:

With your sensitivity completed, what are your two “breakeven” numbers?  What would you finally tell Johnny Inept about whether he should proceed with the Buccaneers project?    

Assume you own NNN Corp. that has $100 million in cash and $750 million in debt.  The company is generating free cash flow of $125 million per year starting this year and will grow at 7% per year for the foreseeable future.  If the weighted average cost of capital is 12%, what is the firm’s equity value per share if they have 100 million shares outstanding?