# Question

In Problem 24, suppose the firm wishes to keep its debt- equity ratio constant. What is EFN now?

## Answer to relevant Questions

Redo Problem 24 using sales growth rates of 15 and 25 percent in addition to 20 percent. Illustrate graphically the relationship between EFN and the growth rate, and use this graph to determine the relationship between them. ...Suppose the Japanese yen exchange rate is ¥80 = $1, and the British pound exchange rate is £1 = $1.58.a. What is the cross-rate in terms of yen per pound?b. Suppose the cross-rate is ¥129 = £1. Is there an arbitrage ...What is the payback period for the following set of cash flows?Year Cash Flow0...... -$5,5001...... 1,3002...... 1,5003...... 1,9004...... 1,400What is the IRR of the following set of cash flows?Year Cash Flow0....... -$16,4001....... 7,1002....... 8,4003....... 6,900This problem is useful for testing the ability of financial calculators and spreadsheets. Consider the following cash flows. How many different IRRs are there? When should we take this project?Year Cash Flow0 -$ ...Post your question

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