Activities Problem(s) c16 2,7,14,and 21, c17 7 and 25 Essay

Activities Problem(s) c16 2,7,14,and 21, c17 7 and 25 - Essay ExampleIf you did quit, you expect you could find a new job paying $85,000 per year, just you would be unemployed for 3 months while you search for it.Marpor Industries has no debt and expects to generate free silver flows of $16 one thousand million each year. Marpor believes that if it permanently increases its level of debt to $40 million, the risk of financial distress may cause it to lose some customers and receive less favorable terms from its suppliers. As a result, Marpors expect free cash flows with debt will be only $15 million per year. Suppose Marpors tax rate is 35%, the risk-free rate is 5%, the expected return of the market is 15%, and the beta of Marpors free cash flows is 1.10 (with or without leverage).You own your own household, and you want to raise $30 million to fund an expansion. Currently, you own 100% of the firms equity, and the firm has no debt. To raise the $30 million solely through equity, you will need to cheat on two-thirds of the firm. However, you would prefer to maintain at least a 50% equity stake in the firm to retain control.Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsams board has decided to pay out this cash as a one-time dividend.d. Suppose Raviv retained the cash so that it would not need to raise new funds from outside investors for an expansion it has planned for succeeding(a) year. If it did raise new funds, it would have to pay issuance fees. How much does Raviv need to save in issuance fees to make retaining the cash beneficial for its investors? (Assume fees can be expensed for corporate tax