Imagine a situation in which a firm owes its creditors $50,000 but the firm’s assets are only worth $40,000. Equity holders have an incentive to take on very risky projects because if they do nothing, they are certain to be wiped out, while debt holders have incentive to avoid risky projects. Which of the following theories is appropriate to represent this situation? a. The static tradeoff theory
b. An agency cost
c. A product market model
d. The asymmetric information of debtholders and equity holders

Auniversity spent $1.8 million to install solar panels atop a parking garage. these panels will have a capacity of 400 kilowatts (kw) and have a life expectancy of 20 years. suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kwh), and that the marginal cost of electricity production using the solar panels is zero. hint: it may be easier to think of the present value of operating the solar panels for 1 hour per year first. approximately how many hours per year will the solar panels need to operate to enable this project to break even? a. a.3,696.48 b.14,785.92 c.9,241.20 if the solar panels can operate only for 8,317 hours a year at maximum, the project (would/would not)break even?

Uestion 7 you hold a portfolio consisting of a $5,000 investment in each of 20 different stocks. the portfolio beta is equal to 1.12. you have decided to sell a coal mining stock (b = 1.00) at $5,000 net and use the proceeds to buy a like amount of a mineral rights company stock (b = 2.00). what is the new beta of the portfolio?

James has set the goal of achieving all "a"s during this year of school.which term best describes this goal