When rival firms agree to control output and raise prices, there is:
a. a strategic market merger b. a vertical merger
c. a tying arrangement
d. an interlocking directorate e. none of the other choices
e
You might also like to view...
A packaged business software system that allows an organization to improve the quality and timeliness of information as well as integrate and standardize information is referred to as a(n) _____________________________________________
Fill in the blank(s) with correct word
?Tony's Pizzeria plans to issue bonds with a par value of $1,000 and 10 years to maturity. These bonds will pay $45 interest every 6 months. Current market conditions are such that the bonds will be sold at net $937.79. What is the yield to maturity (YTM) of the issue as a broker would quote it to an investor? (Round the answer to the nearest whole number.)
A. ?11% B. 10%? C. 9%? D. 8%? E. ?7%
HomeFront Construction Company built large, single-family homes for 25 years. Then there was a shift toward more demand for small luxury condominiums, and HomeFront changed its focus. The change in demand could be explained by
A. the increasing number of people whose children are grown. B. the increasing number of empty nesters. C. the fact that consumers in urban areas generally have higher incomes. D. All these explanations could be relevant.
Johnson's Diner has an adjusted WACC of 10.08%. The company has a capital structure consisting of 70% equity and 30% debt, a cost of equity of 12.00%, a before-tax cost of debt of 8.00%, and a tax rate of 30%
Johnson is considering expanding by building a new diner in a distant city and considers the project to be riskier than his current operation. He estimates his existing beta to be 1.0, the required return on the market portfolio to be 12.00%, the risk-free rate to be 3.00%, and the beta for the new project to be 1.40. Given this information, and assuming the cost of debt will not change if Johnson undertakes the new project, what adjusted WACC should he use in his decision-making? A) 10.08% B) 12.60% C) 13.32% D) 14.16%