International Finance Homework

Refer as needed to material in Chapters 12 and 13. Read the instructions carefully and answer all questions clearly and concisely. Include examples to highlight your comments.

Guidelines: You may use all of the resources (e.g., textbook, other books, websites) available to you, EXCEPT FOR OTHER PEOPLE. Your work must be done individually. Any exams that appear similar in format and/or answers will be considered to have been done in a group setting. All such exams will receive a score of 0. Late exams will not be accepted for any reason. Any late exams will receive a score of 0. These policies will be strictly enforced.

22. Suppose that Hanna Nails, Inc capital structure features 45 percent equity, 55 percent debt, and that it’s before tax cost of debt is 5%, while its cost of equity is 9 percent. If the appropriate weighted average tax rate is 40 percent, What will be Hanna Nails’ WACC?

Complete the following exercises and problems from the textbook. Some problems ask multiple questions; be sure to answer every part of the exercise or problem unless otherwise noted

Complete the following problems from Chapter 8 and submit to your instructor. These problems will be graded for accuracy. Problems: 8-18, 8-23

a. Determine the value of the firm at the above debt levels. What level of debt should the firm

All assignments are to be completed individually without the assistance of classmates or anyone else. If you have questions, contact the professor who will be glad to help you. By turning in this assignment, you are stating that this work is yours alone.

Instructions: Read chapter 3 in your textbook and review the lecture notes and study resources provided by your instructor. Type your answer in the answer block provided for each question. Answer blocks should expand as you type. If you experience difficulty typing in the provided answer blocks, you may type your answers in a new document. Save a copy of the completed activity to your computer for your records. Although this activity is not graded, your instructor reserves the right to require students to submit their completed work at any time throughout the semester.

Follow the directions in the Student Guide to complete this graded assignment. Your teacher will use the rubric and scoring information at the end of this document to grade your assignment. When you are finished, submit this assignment to your teacher by the due date for full credit.

Answer each problem thoroughly. Each problem is worth 10 points. Make sure to provide detailed explanations for each part of each problem.

Directions: Answer the following problems IN DETAIL. Your analysis must be typed and should be free of grammatical errors and “slang” terms.” Wherever appropriate, make sure you supplement your discussion with graphical analysis and equations. The graphs may be hand drawn, but please make sure they are neat. There are no restrictions or requirements on working in groups. The one exception is that each person must hand in his/her OWN work. In economic terms, there are no input restrictions; however, the output MUST be yours.

3) What is the weighted average cost of capital and why is it important to estimate it? Is the

The purpose of this report is to research and examine Toys "R" Us, the world's largiest toy chain store, so as to provide the company with strategic recommendations for future success. To throughly understand the company, the analysis is divided into multiple focus points: industry analysis, firm strategy analysis and firm financial analysis. The analysis concludes with rating that we give the company's stock as well as our strategic recommendations for the company to increase it's overall preformance.

Using the same market risk premium and risk free rate (5.5% & 4.62% respectively) given in the case, the averaged beta of 1.40, the pretax cost of debt of 7.65%, and the weighted average of debt & equity, the products & systems

Weight of Equity = 71%; Equity Cost of Capital = 12%; Weight of Debt = 29%; Debt Cost of Capital = 4.55%