This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Pay-Day Banks Inc. is a short-term lender. Pay-Day is all equity financed. Pay-Day has 20 million ... (Read 39 times)

joe

  • Hero Member
  • *****
  • Posts: 627
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by joe on Apr 25, 2021

Bsand8

  • Sr. Member
  • ****
  • Posts: 327
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.
Answer Preview
Only 58% of students answer this correctly


joe

  • Member
  • Posts: 627
Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

tanna.moeller

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

The characteristically small and relatively short-legged reindeer from Svalbard The characteristically small and relatively short-legged reindeer from Svalbard
Associative Long-Term Potentiation Associative Long-Term Potentiation
Growth of Dendritic Spines After Long-Term Potentiation Growth of Dendritic Spines After Long-Term Potentiation
The human eye, a product of 600 million years of evolution (Lamb, Collin, & Pugh, 2007). The human eye, a product of 600 million years of evolution (Lamb, Collin, & Pugh, 2007).
Long Term Control Medications Long Term Control Medications
Pangaea 200 Million Years Ago Pangaea 200 Million Years Ago
Video: Diversity of Living Creatures - Charles Darwin & the Beagle's Voyage

For a complete list of videos, visit our video library