Explain how to develop plan to leverage stakeholder diversty

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1. The firm has a debt obligation of 198 due at t=1. The current asset value is 193; that is, the firm is under financial distress. The management believes that the asset value is most likely to remain at 193 at t=1 and the firm would go under. The firm has an investment project at the present time that requires 19 as initial investment. The value of the project has a 45% chance to become 29 (that is, a gain of 10) and a 55% chance to become 7 (that is, a loss of 12). The WACC for the project is 30 percent. If the firm invest in the project, what is the expected cash flow at t=1 for shareholders

a. $1.32

b. $2.25

c. $1.00

d. $2.97

2. Sustainable Growth?If the SGS Corp. has an ROE of 14.5 percent and a payout ratio of 25 percent, what is its sustainable growth rate?

3. Analyze the following factors which influence bond values: Inflation, liquidity risk, monetary policy and options.

4. Explain how to develop a plan to leverage Stakeholder diversity, Provide Real world examples

Reference no: EM132029302

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