________ are a type of SBU that often require heavy investments to finance their rapid growth

Jane takes her car to Joe's Garage, leaving it there for repairs. Ted, one of Joe's employees, takes

the car for a joy ride, without Joe's permission. In fact, Joe has a very strict rule that his employees cannot drive customers' cars except to diagnose or test them. Ted crashes into another car, driven by Mary. Mary is injured and sues Jane, Ted, and Joe. Which of the following is true? A) Only Ted is liable B) Only Joe is liable C) Only Ted and Joe are liable D) Jane, Ted, and Joe are all liable E) Only Jane and Ted are liable

Tardy Clocks Inc (TC) has long term bonds with a face value of $6M, the coupon rate on the bonds is 6% and the yield on the bonds is also 6%. The unlevered cost of equity is 10% and the value of TC's equity is $9.1M. The corporate tax rate is 35%

What is the required return of shareholders at Tardy? A) 6.00% B) 10.00% C) 10.92% D) 11.71% E) 12.57%