Cyberdyne Systems is a military/defense products company. Cyberdyne Systems is all equity financed. Cyberdyne has 200 million shares outstanding which trade for $20 per share. Cyberdyne's shareholders require a return of 10%
Omni Defense Products Inc is also a military/defense products company. It's shares are trading for $35 per share. Omni has 100 million shares outstanding. Omni has debt worth $3 billion. Omni's debt is priced to yield 6.5%.
What is the required return of Omni's shareholders? (Assume that the tax rate is 0%.)
A) 12.33%
B) 12.50%
C) 12.63%
D) 13.00%
E) 13.50%
D
You might also like to view...
Physical distance between sender and receiver impacts ______.
A. tone and loudness B. gestures and posture C. feedback and time D. all these
What technological advancement created for mobile devices has unleashed a new era of pricing transparency for consumers?
A. GPS systems B. SIM cards C. text messaging D. wireless apps E. mobile banking
A company's Inventory balance decreased by $18,000 during the year. Its Accounts Payable balance decreased by $6,000, and its cost of goods sold for the year was $340,000. The company's total amount of cash payments for merchandise during the year equals:
A. $316,000. B. $340,000. C. $358,000. D. $328,000. E. $364,000.
Congress created the first regulatory agency in 1887 . It was called the:
a. Federal Trade Commission b. Federal Power Commission c. Interstate Commerce Commission d. Federal Communications Commission e. none of the other choices