Determine why corporations have their debt rated

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1) Determine why corporations have their debt rated.

2) Based on your summary of the prospectus section indicate whether it makes you more or less likely to buy the stock. Give your reasons for your judgment.

3) Using Modigiliani and Miller's Proposition II, determine the required return on unleveraged equity

4) Evaluate why violations of the Modigiliani and Miller assumptions of perfect markets require revisions to your capital budgeting analysis.

Reference no: EM131081316

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