FetchFun Inc. is currently an all-equity firm with 20 million shares outstanding and a stock price of $7.50 per share. FetchFun Inc. plans to announce that it will borrow $50 million and use the proceeds to repurchase shares. FetchFun Inc. will pay interest only on this debt, and it has no further plans to increase or decrease the amount of debt. The corporate tax rate is 40%.

Required:
a. What is the market value of FetchFun Inc. existing assets before the announcement?
b. What is the market value of FetchFun Inc assets (including any tax shields) just after the debt is issued, but before the shares are repurchased?

Which statement is true about the elements of the interface of a presentation program? a. the status bar appears at the top of the page and displays options to style your slides. b. the tool bar displays the thumbnails of your presentation slides in the order they will appear in the presentation. c. rulers indicate the margins, tabs, and indents in a presentation slide. d. the document area provides a list of commands to create, format, and edit presentations.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u. s. company and i don’t make decisions based on what’s good for the u. s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?