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The development of the new issue junk bond market had
important implications for capital structure choice. The
existence of a viable junk bond market means that firms can
comfortably maintain higher degrees of leverage than they could
prior to the development of this market. Do you agree or
disagree? Justify your answer.
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FIN 571 Week 5 Individual Assignment DCF and WACC
Problems
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Discounted Cash Flows and WACC Homework Problems
Please post the answers (and show your work) in the assignments section
by midnight the last day of the week assigned.
Calculate the future value of 1,535 invested today for 8 years at 6 percent.
(5 points)