Suppose the Risk-Free Interest Rate Is 4

question 91

Multiple Choice

Suppose the risk-free interest rate is 4%.If Nielson borrows $150 million today at this rate and uses the proceeds to pay an immediate cash dividend,then according to MM,the market value of its equity just alter the dividend is paid would be closest to:

• A) $0 million
• B) $150 million
• C) $250 million
• D) $400 million

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Definitions:

Assertive

Characterized by confidence and self-assurance in expressing opinions, needs, and desires, while respecting the rights of others.

Self-Control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Inductive Appeals

Arguments or appeals that move from specific instances to a general conclusion, often used in persuasive communication to infer broad principles from specific cases.

Power Assertion

A disciplinary technique that involves the use of authority or physical force to enforce rules and correct misbehavior.