Risk-free Interest Rate Bussiness Assignment Help

In 2022 there is about 4.9% growth across the world which is a deviation of 1.1% from 2021. Therefore, there are different things that should be done to increase the global economy, for example, developing institutions and broadening the economy. this is a clear indication of why business studies are taught in schools. However, it is challenging for many. Get help from our experts by contacting my homework writers.  this is an example of a common question examined.

XYZ Corp. has no debt. Its assets will be worth 600 million in one year if the economy does well but only 300 million in one year if the economy does poorly. 20pts 2 Both events will occur with equal probability. The market value today of its assets is 400 million.

a) What is the expected return of XYZ stock without leverage?:

b) Suppose the risk-free interest rate is 5%. If XYZ borrows 100 million today at this rate and uses the proceeds to pay an immediate cash dividend, what will be the market value of its equity just after the 7 dividend is paid, according to MM?

c) What is the expected return of XYZ stock after the dividend is paid in part (b)?

Business studies are studied across the world in various institutions at different levels, and thus some specialize in the subject at a higher level. Get assignment help by contacting myhomework writers for the best services at a low price.

Calculate your order
275 words
Total price: $0.00

Top-quality papers guaranteed


100% original papers

We sell only unique pieces of writing completed according to your demands.


Confidential service

We use security encryption to keep your personal data protected.


Money-back guarantee

We can give your money back if something goes wrong with your order.

Enjoy the free features we offer to everyone

  1. Title page

    Get a free title page formatted according to the specifics of your particular style.

  2. Custom formatting

    Request us to use APA, MLA, Harvard, Chicago, or any other style for your essay.

  3. Bibliography page

    Don’t pay extra for a list of references that perfectly fits your academic needs.

  4. 24/7 support assistance

    Ask us a question anytime you need to—we don’t charge extra for supporting you!

Calculate how much your essay costs

Type of paper
Academic level
550 words

How to place an order

  • Choose the number of pages, your academic level, and deadline
  • Push the orange button
  • Give instructions for your paper
  • Pay with PayPal or a credit card
  • Track the progress of your order
  • Approve and enjoy your custom paper

Ask experts to write you a cheap essay of excellent quality

Place an order