fin 534 wk 8-HOMEWORK FINANCE-

Points: 100 Homework Set 4: Chapters 9, 10, and 11

Criteria Unacceptable Below 70% F Fair

70-79% C Proficient 80-89% B

Exemplary 90-100%A

1. If Bad Boys, Inc. raises capital using 45% debt, 5% preferred stock, and 50% common stock, what is Bad Boys cost of capital? Weight: 30%

Did not submit or incompletely calculated Bad Boys, Inc.'s cost of capital.

Partially calculated Bad Boys, Inc.'s cost of capital.

Satisfactorily calculated Bad Boys, Inc.'s cost of capital.

Thoroughly calculated Bad Boys, Inc.'s cost of capital.

2. If Bad Boys, Inc. raises capital using 30% debt, 5% preferred stock, and 65% common stock, what is Bad Boys cost of capital? Weight: 30%

Did not submit or incompletely calculated Bad Boys, Inc.'s cost of capital.

Partially calculated Bad Boys, Inc.'s cost of capital.

Satisfactorily calculated Bad Boys, Inc.'s cost of capital.

Thoroughly calculated Bad Boys, Inc.'s cost of capital.

3. In your own words, identify two corporations that have dealt with cannibalization and what steps were taken to overcome the cannibalization. Please provide any citations and references. Please be articulate in your responses. Weight: 30%

Did not submit or incompletely identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Did not submit or incompletely provided citations and references.

Partially identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Partially provided citations and references.

Satisfactorily identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Satisfactorily provided citations and references.

Thoroughly identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Thoroughly provided citations and references.

4. Clarity, writing mechanics, and formatting requirements. Weight: 10%

More than 6 errors present

5-6 errors present 3-4 errors present 0-2 errors present