You are trying to value Cole Slaw Motors (CSM), which is introducing a new garbage-powered automobile in the U.S.  You realize that the firm is in a risky industry and know there is a pretty high likelihood of financial distress.  Depending upon the success of this product, CSM will have a market value at the end of this year of $75 million, $150 million, or $850 million, with each outcome being equally likely. The risk-free discount rate is 3%, and there are 10 million shares outstanding.    Assuming perfect capital markets, what is the value of the firm and it equity? What is the price per share? Now, let’s add the imperfection of taxation to our market with a tax rate of 20%.  Assume CSM has $180 million in debt today charging an interest rate of 9%.  The company plans to issue new debt each year to fund growth, so debt is expected to grow at 5%.  Because of the EBIT risk, the discount rate on the tax shield is estimated at 11%.  2.  How does this change affect the value of the firm? Finally, let’s add the effect of financial distress costs. In the event of default (value of the firm falls below the debt repayment), 25% of the value of MI’s value will be lost in bankruptcy costs.  Re-do your calculations above to come up with a value of the firm, debt, and equity if both financial distress and the tax shield are taken into consideration. 3.  What is the new value of the debt and equity?        

Deoxygenated blood returns to the heart via the:

You overhear your manager saying that she is going to take cash out of the company’s account at the bank to buy lottery tickets.  You know that she has been very stressed lately about the company’s financial prospects and had just met with a banker today.  This is most likely an example of:

The largest global greenhouse gas emission by sector is energy use in _ .

The top  three country(ies)  which produces the most carbon dioxide emissions is _ .

Answer the following question. Show the answer here. After uploading your exam, take the pictures of your work and upload them to Exam 1 Solutions, Extra Credit, and Partial Credit assignment. Your work must reflect the answer provided here. A solution of 1.00 g of the covalent organic compound in 90.0 mL of benzene has an osmotic pressure of 8.95 mm Hg at 27oC. Estimate the molecular weight of the compound, in Da.

Parasympathetic stimulation increases heart rate.

Which is a function of the cardiovascular system?

Blood returning from the lungs enters:

A portal system involves: