subject

Business, 13.05.2021 23:30 patrickfryer240

Ballyhoo Inc., was taken private through an LBO transaction many years ago. The company is now carrying a considerable amount of debt in the form of a zero-coupon bond with a face value of $2.5B which needs to be repaid in two years. The estimated market value of the Ballyhoo underlying business is $2.0B, and the volatility of the underlying business is 30.0%. Using a risk-free rate of 1.5%: a. What is the equity worth in this business?
b. What if the value of the debt?
c. What is the debt-to-equity ratio of the firm?
d. What is the yield to maturity of the debt?

ansver

Answers: 2

Show answers

Another question on Business

question

Business, 21.06.2019 20:00

Your assessment tool contains rich data about child progress in language and literacy but no details to explain the differences between children. you decide to: a. replace the tool with another b. analyze the data using factors such as language, ability, and participation rates c. review your anecdotal notations regarding language and literacy development d. talk with families about what they are seeing at home

Answers: 2

question

Business, 22.06.2019 12:50

Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false

Answers: 3

question

Business, 22.06.2019 20:00

Ryngard corp's sales last year were $38,000, and its total assets were $16,000. what was its total assets turnover ratio (tato)? a. 2.04b. 2.14c. 2.26d. 2.38e. 2.49

Answers: 1

question

Business, 22.06.2019 20:30

Almeda products, inc., uses a job-order costing system. the company's inventory balances on april 1, the start of its fiscal year, were as follows:

Answers: 2

You know the right answer?

Ballyhoo Inc., was taken private through an LBO transaction many years ago. The company is now carry...

Questions

question

Business, 24.02.2020 18:57

Currie Company borrowed $24,000 from the Sierra Bank by issuing a 9% three-year note. Currie agreed to repay the principal and interest by making annu...

question

Business, 24.02.2020 18:57

An experiment can result in one of five equally likely simple events, E1, E2, , E5. Events A, B, and C are defined as follows. A: E2, E4 P(A) = 0.4 B:...

question

Social Studies, 24.02.2020 18:57

Andrew demonstrates warmth and nurturance towards his children. He does not believe in punishment of any sort and does not have any rules for his chil...

question

Computers and Technology, 24.02.2020 18:57

G what does the following piece of code do a) Print the duplicate elements in the array b) Print the element with maximum frequency c) Print the uniqu...

question

Social Studies, 24.02.2020 18:57

Is my girlfriend there...

question

Computers and Technology, 24.02.2020 18:57

Given the following code fragment, which of the following expressions is always true? int x; scanf("%d", &x); 32) A) if( x < 3) B) if( x = 1) C...

question

Business, 24.02.2020 18:57

The phases of project management are: A. planning, scheduling, and controlling. B. planning, programming, and budgeting. C. planning, organizing, staf...

question

Business, 24.02.2020 18:57

The maintenance of money’s value is said to depend on the monetary authorities. What might the monetary authorities do to devalue a currency in foreig...

question

Computers and Technology, 24.02.2020 18:57

Some Web sites impose certain rules for passwords. Write a function that checkswhether a string is a valid password. Suppose the password rules are as...

question

Business, 24.02.2020 18:57

Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000 this morning into an...

question

Business, 24.02.2020 18:57

An owner of real estate was declared legally incompetent and was committed to a state mental institution. While institutionalized, the owner wrote and...

question

Social Studies, 24.02.2020 18:57

An individual who appears to be willing to try new ideas when seeking solutions, regardless of how unconventional they may be, demonstrates the trait...

question

Business, 24.02.2020 18:57

G Assume the following sales data for a company: Current year $764,442 Preceding year $509,074 What is the percentage increase in sales from the prece...

question

History, 24.02.2020 18:57

What lessons about polling were learned from these two polling mistakes?...

question

Computers and Technology, 24.02.2020 18:57

Electronic data interchange (EDI) enables inventory systems, which rely on computer-to-computer data exchange to minimize unnecessary inventory....

question

Social Studies, 24.02.2020 18:57

All of the following are types of corporate cultures except a) adaptability culture. b) clan culture. c) achievement culture. d) consistency culture....

question

Biology, 24.02.2020 18:58

In this situation, the project manager and top managers are heatedly discussing their concerns about going over the expected budget and falling behind...

question

Mathematics, 24.02.2020 18:58

The first pentagon is dilated to form the second pentagon. Drag and drop the answer to correctly complete the statement. The s...

question

Social Studies, 24.02.2020 18:58

When at the commencement of a legal action a plaintiff asks the court to confiscate certain property belonging to the defendant to act as security for...

question

Biology, 24.02.2020 18:58

The speed at which waves approach the shore depends on the shoreline features and the depth of the sea floor. When a wave reaches the shore, it releas...

More questions: Business Another questions

Questions on the website: 13722363