Bonds maturing in 1, 2, and 3 years have prices of 0.9020, 0.8320, and 0.7620, respectively. What is the price of a put option that expires in 1 year that gives you the right to sell a 1-year bond for a price of 0.9200? Assume ? = 0.18

A retailer can best implement a consumer's right to safety by _____

a. selling foods with additives b. age-labeling all toys c. providing a money-back guarantee on all goods and services d. nutritional labeling of all food products

Klearcut Forestry Inc generates perpetual annual EBIT of $100 million. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year

Assume that all of the perfect market M&M assumptions hold and that the corporate tax rate is 35%. The CFO of Klearcut is trying to determine the company's optimal capital structure. Which of the debt-to-equity ratios listed below will maximize Klearcut's value? A) D/E = 0.5 B) D/E = 1.0 C) D/E = 1.5 D) D/E = 2.0 E) D/E = 2.5