Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 399 Weeks Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 13 Mar 2018 My Price 6.00

debt-equity ratio

BBJ has a debt-equity ratio of 0.2. Current stock price is $50 per share, with 2.5 billion shares outstanding. The firm has a equity beta of 0.5 and can borrow at 4.2%, where the risk free rate is 4%. Market expected return is 10% and their tax rate is 35%. A) This year expected cash flows are $6.0 billion dollars, in this case what growth rate of free cash flows is consistent with its current share price? B) BBJ thinks it can add debt without impacting a risk of distress or other costs. With a higher debt to equity ratio of 0.5, borrowing costs will rise to 4.5% If BBJ announces that it will raise its debt-equity ratio to 0.5, through a leveraged recap (buying back shares) solve for the affect this will have on their stock price. BBJ has a debt-equity ratio of 0.2. Current stock price is $50 per share, with 2.5 billion shares outstanding. The firm has a equity beta of 0.5 and can borrow at 4.2%, where the risk free rate is 4%. Market expected return is 10% and their tax rate is 35%. This year expected cash flows are $6.0 billion dollars, in this case what growth rate of free cash flows is consistent with its current share price? BBJ thinks it can add debt without impacting a risk of distress or other costs. With a higher debt to equity ratio of 0.5, borrowing costs will rise to 4.5%. If BBJ announces that it will raise its debt-equity ratio to 0.5, through a leveraged recap (buying back shares) solve for the affect this will have on their stock price.

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Mar 2018 11:03 AM My Price 6.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------

Not Rated(0)
Relevent Questions