How would the company ’ s share value and debt value change if the risk-free rate increased to 6%? Explain the significance of your results

Use your conclusions from the previous question. The market value of a utilities company is $3 billion, and their continuous annual standard deviation is 40%. 66 The company financed its assets through a zerocoupon bond with a face value of $2 billion, with interest and principle to be repaid in nine years. Assume that the company does not distribute dividends. 67 The risk-free interest rate is 4%. a. Calculate the value of the company ’ s shares as a call option on its assets. b. What is the market value of the company ’ s debt? c. How would the company ’ s share value and debt value change if the risk-free rate increased to 6%? Explain the significance of your results

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A new synthetic feed additive is found in an experiment to accelerate the growth of hogs sufficiently to reduce the “time to market” by 10%. Should it be added to the feed?

Give your assessment of the relative costs of Type I and Type II errors in the following situations where a decision is pending: a. A new synthetic feed additive is….

A company offers a cloud-sharing service aimed at consumers, including a free level of service to all, as well as higher paying levels.

A company offers a cloud-sharing service aimed at consumers, including a free level of service to all, as well as higher paying levels. Currently, they offer a relatively low level….

The “churn” rate in a subscription business is that rate at which subscribers leave in a given time period.

The “churn” rate in a subscription business is that rate at which subscribers leave in a given time period. In the US wireless industry, the churn rate is on the….