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CORPORATE FINANCE THEORY III Individual Assignment (25% of total mark) Questions: 1. Problem XXXXXXXXXX*4 = 10 marks) 2. Problem XXXXXXXXXXmarks) Both from textbook chapter 17 3. Problem XXXXXXXXXX*5...

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CORPORATE FINANCE THEORY III
Individual Assignment (25% of total mark)
Questions:
1. Problem XXXXXXXXXX*4 = 10 marks)
2. Problem XXXXXXXXXXmarks)
Both from textbook chapter 17
3. Problem XXXXXXXXXX*5 = 7.5 marks)
From textbook chapter 18
Information:
· Each answer (except for Question 1) should not exceed 500 words.
· The assignment is to be submitted online on MyUni.
· Each day the assignment is late there will be a 10% penalty applied.
· Please ensure your name and ID are on the front page.
Textbook: Brealey, R. S. Myers and F. Allen, 2019. Principles of Corporate Finance, 13th edition McGraw-Hill. New York.
Make any assumptions as needed but make sure you clearly state them in your answer.
For ease of reference, the questions are appended below:
Chapter 17
Chapter 18
3
Answered 5 days After Apr 01, 2021

Solution

Himanshu answered on Apr 06 2021
149 Votes
Sheet1
                    Chapter 17
                    17        Cost of Levered equity                    rE    13.00%
                            Beta                    Î²E    1.5
                            Risk free                    rf    10%
                            cost of debt                    rd    12%
                            beta of debt                    bd    0
                            Market premium                    rm    12%
                            cost of unlevered equity                    ra    11.50%
                            Asset...
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