Author: quizs

Wilson Dover Inc.
The total value (debt plus equity) of Wilson Dover Inc.is $500 million and the face value of its 1-year coupon debt is $200 million.The volatility (σ) of Wilson Dover’s total value is 0.60, and the risk-free rate is 5%.Assume that N(d1) = 0.9720 and N(d2) = 0.9050.
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-Refer to the data for Wilson Dover Inc.What is the value (in millions) of Wilson Dover’s equity if it is viewed as an option?
A) $228.77
B) $254.19
C) $282.43
D) $313.81
E) $345.19

Table 15-7
Sally owns the only shoe store in town. She has the following cost and revenue information.
-Refer to Table 15-7. What is the marginal cost of the 8th pair of shoes?
A)$50
B)$60
C)$90
D)$110

Table 15-7
Sally owns the only shoe store in town. She has the following cost and revenue information.
-Refer to Table 15-7. What is the marginal cost of the 6th pair of shoes?
A)$44
B)$46
C)$55
D)$60

Table 15-7
Sally owns the only shoe store in town. She has the following cost and revenue information.
-Refer to Table 15-7. What is the total revenue from selling 8 pairs of shoes?
A)$90
B)$695
C)$720
D)$800

Table 15-7
Sally owns the only shoe store in town. She has the following cost and revenue information.
-Refer to Table 15-7. What is the total revenue from selling 6 pairs of shoes?
A)$100
B)$600
C)$625
D)$660

Table 15-7
Sally owns the only shoe store in town. She has the following cost and revenue information.
-Refer to Table 15-7. What is the marginal revenue from selling the 8th pair of shoes?
A)$10
B)$20
C)$40
D)$90

Table 15-7
Sally owns the only shoe store in town. She has the following cost and revenue information.
-Refer to Table 15-7. What is the marginal revenue from selling the 2nd pair of shoes?
A)$140
B)$150
C)$160
D)$170