Which of the following nations is not a member of the Andean Common Market?
A) Venezuela
B) Colombia
C) Peru
D) Argentina
D
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For an antitrust action to be sustained under Section 2 of the Sherman Act, the defendant must
possess monopoly power in the relevant market. Indicate whether the statement is true or false
Leakey Valves Inc is all equity financed and generates perpetual annual EBIT of $600. 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 Leakey Valves has a 100% payout rate, 1,000 shares outstanding, and that shareholders require a return of 6%. Assume that the tax rate is 0%. Leakey Valves is considering an open market stock repurchase. It plans to buy 20% of its outstanding shares at the price of $10.00 per share. The repurchased shares will be cancelled. It will finance the repurchase by issuing perpetual bonds with a coupon rate (and yield) of 4%. Assume that the tax rate is 0%. If Leakey Valves goes ahead with the repurchase, then what is the value of the company after the repurchase is complete? A) $8,000 B) $10,000 C) $12,000 D) $15,000 E) $9,000