Using the pure-play method, the estimated equity beta for the private company is closest to
An analyst gathered the following information about a private company and its publicly
traded competitor:
Comparable Companies Tax Rate Debt/Equity Equity Beta
Private company 30.0% 1.00 N.A.
Public company 35.0% 0.90 1.75
A. 1.029.
B. 1.104.
C. 1.877.
Answer: C. 1.877.
Business
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Assume that Fake Stone, Inc. is operating at 88 percent of capacity. All costs and net working capital vary directly with sales. What is the amount of the pro forma net fixed assets for next year if sales are projected to increase by 13 percent?
A. $19,600 B. $20,406 C. $21,500 D. $21,667 E. $22,148
Business
Congress passed the Reconstruction Era Act after the enactment of the Fourteenth Amendment
Indicate whether the statement is true or false
Business