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Author Question: Pay-Day Banks Inc. is a short-term lender. Pay-Day is all equity financed. Pay-Day has 20 million ... (Read 35 times)

joe

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on: Apr 25, 2021
Pay-Day Banks Inc. is a short-term lender. Pay-Day is all equity financed. Pay-Day has 20 million shares outstanding which trade for $7 per share. Pay-Day's shareholders require a return of 9%.
Cash-Mart Financial is also a short-term lender. It's shares are trading for $15 per share. Cash-Mart has 10 million shares outstanding. Cash-Mart's corporate bonds are rated BB and are trading for 87.5% of face value to yield 7%. The face value of Cash-Mart's debt is $100 million. 
What is the required return of Cash-Mart's shareholders? (Assume that the tax rate is 0%.)
◦ 10.17%
◦ 10.25%
◦ 10.33%
◦ 10.50%
◦ 10.67%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by joe on Apr 25, 2021

Bsand8

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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joe

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

billybob123

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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