Homework set #4: chapters 9, 10, & 11 due week 8 and worth 100 points


Homeeffect Set #4: Chapters 9, 10, & 11

Due Week 8 and excellence 100 points

Directions: Retort the aftercited questions on a disconnected muniment. Explain how you reached the retort or illusion your effect if a unversified computation is needed, or twain. Submit your assignment using the assignment concatenate aloft.

A. Bad Boys, Inc. is evaluating its consume of principal. Under consideration, Bad Boys, Inc. expects to outcome new debit at par after a while a coupon trounce of 8% and to outcome new preferred supply after a while a $2.50 per divide dividend at $25 a divide. The beggarly supply of Bad Boys, Inc. is currently selling for $20.00 a divide. Bad Boys, Inc. expects to pay a dividend of $1.50 per divide instant year. An equity analyst foresees a development in dividends at a trounce of 5% per year. Bad Boys, Inc. marginal tax trounce is 35%. If Bad Boys, Inc. raises principal using 45% debit, 5% preferred supply, and 50% beggarly supply, what is Bad Boys consume of principal?

B. If Bad Boys, Inc. raises principal using 30% debit, 5% preferred supply, and 65% beggarly supply, what is Bad Boys consume of principal?

C. On page 457, your textbook details the signal Cannibalization. In your own tone, test two corporations that entertain dealt after a while cannibalization and what steps were enslaved to overcome the cannibalization. Please yield any citations and references. Please be ringing in your responses.

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