Corporate Finance Solutions Manual – Ross, Westerfield, and Jaffe 11th Edition

234567389 854

399
966
"

7
48



!!
76738





0


, 2345678






   
  





!"
#

$%& '(
)*+
,-./-.0)+
1-.2
-1
-3(+.4*5/6
)*+
4*0.+*-78+.4
0.+
)*+
-3(+.4
-1
)*+
15.29
:*+
4*0.+*-78+.4

;<;=>?>@;?ABC;=>DCE?DF?>@;?=DCGDCH>BDIJ?K@D?BI?>LCI?HGGDBI>?>@;?FBCMNE?MHIHO;M;I>P?Q@BE?E;GHCH>BDI?DF?
-3(+.4*5/
1.-2
,-().-7
5(
)*+
,-./-.0)+
1-.2
-1
-.R0(5S0)5-(
54
3*0)
,0T4+4
0R+(,U
/.-V7+24
)-

;WBE>P?XHIHO;M;I>?MHY?H=>?BI?B>E?DKI?DC?EDM;DI;?;<E;NE?Z;E>?BI>;C;E>EJ?CH>@;C?>@HI?>@DE;?DF?>@;?
4*0.+*-78+.49
'1
4T,*
+[+()4
-,,T.6
)*+U
20U
,-().085,)
)*+
R-07
-1
20\525S5(R
)*+
4*0.+
/.5,+
-1
)*+

+]T5)U
-1
)*+
15.29



^%& _T,*
-.R0(5S0)5-(4
1.+]T+()7U
/T.4T+
4-,507
-.
/-75)5,07
25445-(46
4-
20(U
8511+.+()
R-074
0.+

,-(,+5[0V7+9
`(+
R-07
)*0)
54
-1)+(
,5)+8
54
.+[+(T+
25(525S0)5-(a
59+96
/.-[58+
3*0)+[+.
R--84
0(8

4+.[5,+4
0.+
-11+.+8
0)
)*+
7-3+4)
/-445V7+
,-4)
)-
4-,5+)U9
b
V+))+.
0//.-0,*
25R*)
V+
)-
-V4+.[+
)*0)

+[+(
0
(-)c1-.c/.-15)
VT45(+44
*04
+]T5)U9
:*T46
-(+
0(43+.
54
)*0)
)*+
0//.-/.50)+
R-07
54
)-

20\525S+
)*+
[07T+
-1
)*+
+]T5)U9

d%& e.+4T20V7U6
)*+
,T..+()
4)-,f
[07T+
.+17+,)4
)*+
.54f6
)525(R6
0(8
20R(5)T8+
-1
077
1T)T.+
,04*
17-346

V-)*
4*-.)c)+.2
ghij7-(Rc)+.29
'1
)*54
54
,-..+,)6
)*+(
)*+
4)0)+2+()
54
1074+9



k%& b(
0.RT2+()
,0(
V+
208+
+5)*+.
30U9
b)
)*+
-(+
+\).+2+6
3+
,-T78
0.RT+
)*0)
5(
0
20.f+)
+,-(-2U6

077
-1
)*+4+
)*5(R4
0.+
/.5,+89
:*+.+
54
)*T4
0(
-/)5207
7+[+7
-16
1-.
+\02/7+6
+)*5,07
0(8l-.
577+R07

V+*0[5-.6
0(8
)*+
1.02+3-.f
-1
4)-,f
[07T0)5-(
+\/75,5)7U
5(,7T8+4
)*+4+9
b)
)*+
-)*+.
+\).+2+6
3+

,-T78
0.RT+
)*0)
)*+4+
0.+
(-(c+,-(-25,
/*+(-2+(0
0(8
0.+
V+4)
*0(87+8
)*.-TR*
)*+
/-75)5,07

/.-,+449
b
,70445,
m0(8
*5R*7U
.+7+[0()n
)*-TR*)
]T+4)5-(
)*0)
577T4).0)+4
)*54
8+V0)+
R-+4
4-2+)*5(R

<Bo;?>@BEp?qr?FBCM?@HE?;E>BMH>;A?>@H>?>@;?=DE>?DF?BMGCDsBIO?>@;?EHF;>Y?DF?DI;?DF?B>E?GCDAL=>E?BE?tuv?
25775-(9
w-3+[+.6
)*+
15.2
V+75+[+4
)*0)
52/.-[5(R
)*+
401+)U
-1
)*+
/.-8T,)
3577
-(7U
40[+
x0y

MB<<BDI?BI?GCDAL=>?<BHZB<B>Y?=<HBMEP?z@H>?E@DL<A?>@;?FBCM?AD{|

}%& :*+
R-07
3577
V+
)*+
402+6
VT)
)*+
V+4)
,-T.4+
-1
0,)5-(
)-30.8
)*0)
R-07
20U
V+
8511+.+()
V+,0T4+
-1

8511+.5(R
4-,5076
/-75)5,076
0(8
+,-(-25,
5(4)5)T)5-(49

~%& :*+
R-07
-1
20(0R+2+()
4*-T78
V+
)-
20\525S+
)*+
4*0.+
/.5,+
1-.
)*+
,T..+()
4*0.+*-78+.49
'1

20(0R+2+()
V+75+[+4
)*0)
5)
,0(
52/.-[+
)*+
/.-15)0V575)U
-1
)*+
15.2
4-
)*0)
)*+
4*0.+
/.5,+
3577

+\,++8
x€6
)*+(
)*+U
4*-T78
15R*)
)*+
-11+.
1.-2
)*+
-T)458+
,-2/0(U9
'1
20(0R+2+()
V+75+[+4
)*0)

)*54
V588+.
-.
-)*+.
T(58+()515+8
V588+.4
3577
0,)T077U
/0U
2-.+
)*0(
x€
/+.
4*0.+
)-
0,]T5.+
)*+

,-2/0(U6
)*+(
)*+U
4*-T78
4)577
15R*)
)*+
-11+.9
w-3+[+.6
51
)*+
,T..+()
20(0R+2+()
,0((-)
5(,.+04+

)*+
[07T+
-1
)*+
15.2
V+U-(8
)*+
V58
/.5,+6
0(8
(-
-)*+.
*5R*+.
V584
,-2+
5(6
)*+(
20(0R+2+()
54
(-)

0,)5(R
5(
)*+
5()+.+4)4
-1
)*+
4*0.+*-78+.4
VU
15R*)5(R
)*+
-11+.9
_5(,+
,T..+()
20(0R+.4
-1)+(
7-4+

)*+5.
-V4
3*+(
)*+
,-./-.0)5-(
54
0,]T5.+86
/--.7U
2-(5)-.+8
20(0R+.4
*0[+
0(
5(,+()5[+
)-
15R*)

,-./-.0)+
)0f+-[+.4
5(
45)T0)5-(4
4T,*
04
)*549




0


, 23 56
789
6 6
6
86
8
6
6
666

86
896

96
8
6
66


666
8

9
876


676
9
876
89
696
6
96
8


66
88
86
886
8

6

666
8

98
876


6
8

6
666
8

666
6766
876

6
8
68
86


8!6

"
 8
98

6
66
6
8
 66
6

66
88
6

#$%&'$'()*+%,-'$%.'$%/$0/1/02'3%#4$)*+5%6'+)0%#$%,-)%/$+,/,2,/#$+7%0))8)*%*)+#2*.)+%'$0%)98)*/)$.)+%
7
6
87
66


:3 6
66

98
876
8

8

6
;6
<6

6
87

8


66
6
68 6
89

6
8

698

6
86

8
;
<

888



86
6

6
6

8
886
88

=8766


8
7
6
6
6

"

6

6
8

6
99

9
8
68

6
8
866
7
6
66
8

6
68
6

6
86
89
86
6
6
6
8
66
66
6
66

6
8
8


6
86
6766
6

9


68




>3 =87
9

88
9?
58

78
86
@
"
8
6
588?
6
 6
76



66


6

8
6696
!9

66


8

6
8

8

A 696
8 68

6

6

6
6
6

6
6

96

8
66

6
86

=


86

6
8

6696
8 68
666
86

B

68
6696
8 68


87
8



8 6
6
6
86
8
8C6
8 68


<9
866

889
86
7
6
6 
8
66

88 6

66

66

"
66
6
8
6
6
86
8
66

66
9

"

866

96

9
8


67

 
96
8

8
6

66
8
6

6
86

D6

6

996
6696
8 68
7
6
66
8
67
8



66
6
86

6

8
6
66

66
8

66
6
66




EF3GH
6
96
6
6

6
6

H
6

996
6
6



996

68

6
96
8


6
8

8
66
8

8

6

996


87
8

8 

B86

7
8
88





6

6
8
68 6
6
6 66
6
8

6

8
9
6
6

6

996



8

58
789
9

8

8
IJKK
8
76
6

6
6

86
6

6 66
8
6
ILK?






0


, 2345678






    




 !
"#
$%

&'
%%!&()%*%+,-
%

./0 12345
67428
9::4;
<9=
>4
<?=742;4@
;?
<9:A
9;
:?B4
C2D<45
E?F4742G
FA4=
F4
924
24H422D=I
;?
9
JDK3D@

9::4;G
;A4
9@@4@
9::3BC;D?=
;A9;
;A4
9::4;
<9=
>4
K3D<LJ8
<?=742;4@
;?
<9:A
9;
?2
=492
B92L4;
79J34
D:

DBC?2;9=;5



M/0 1A4
24<?I=D;D?=
9=@
B9;<AD=I
C2D=<DCJ4:
D=
HD=9=<D9J
9<<?3=;D=I
<9JJ
H?2
2474=34:G
9=@
;A4
<?:;:

9::?<D9;4@
FD;A
C2?@3<D=I
;A?:4
2474=NOPQRSTRUORVUTTWOXYRZ[O\RS[OR]O^O\NOR_]T`OPPRaPROPPO\SabccdR
<?BCJ4;4G
=?;
=4<4::92DJ8
FA4=
;A4
<9:A
D:
<?JJ4<;4@
?2
>DJJ:
924
C9D@5
e?;4
;A9;
;AD:
F98
D:
=?;

\O`OPPb]acdR̀T]]O`SfRaSgPRS[ORZbdRb``TN\Sb\SPR[b^OR̀[TPO\RSTRXTRaSh



i/0 1A4
>?;;?B
JD=4
=3B>42
:A?F:
;A4
<A9=I4
D=
;A4
<9:A
>9J9=<4
?=
;A4
>9J9=<4
:A44;5
j:
:3<AG
D;
D:
=?;

9
3:4H3J
=3B>42
H?2
9=9J8kD=I
9
<?BC9=85

l/0 1A4
B9m?2
@DHH424=<4
D:
;A4
;249;B4=;
?H
D=;424:;
4nC4=:45
1A4
9<<?3=;D=I
:;9;4B4=;
?H
<9:A
HJ?F:

;249;:
D=;424:;
9:
9=
?C429;D=I
<9:A
HJ?FG
FADJ4
;A4
HD=9=<D9J
<9:A
HJ?F:
;249;
D=;424:;
9:
9
HD=9=<D=I

<9:A
HJ?F5
1A4
J?ID<
?H
;A4
9<<?3=;D=I
:;9;4B4=;
?H
<9:A
HJ?F:
D:
;A9;
:D=<4
D=;424:;
9CC492:
?=
;A4

D=<?B4
:;9;4B4=;G
FAD<A
:A?F:
;A4
?C429;D?=:
H?2
;A4
C42D?@G
D;
D:
9=
?C429;D=I
<9:A
HJ?F5
o=
249JD;8G

D=;424:;
D:
9
HD=9=<D=I
4nC4=:4G
FAD<A
24:3J;:
H2?B
S[OR̀Tp_b\dgPR̀[TàORTqRXOUSRb\XROrNaSdhRsORZaccR
A974
B?24
;?
:98
9>?3;
;AD:
D=
9
J9;42
<A9C;425
tA4=
<?BC92D=I
;A4
;F?
<9:A
HJ?F
:;9;4B4=;:G
;A4

qa\b\`abcRPSbSOpO\SRTqR`bP[RqcTZPRaPRbRpT]ORb__]T_]abSORpObPN]ORTqRS[OR`Tp_b\dgPR_O]qT]pb\`OR
>4<93:4
?H
D;:
;249;B4=;
?H
D=;424:;5



u/0 v92L4;
79J34:
<9=
=4742
>4
=4I9;D745
oB9ID=4
9
:A924
?H
:;?<L
:4JJD=I
H?2
wxyz5
1AD:
F?3J@
B49=

;A9;
DH
8?3
CJ9<4@
9=
?2@42
H?2
{zz
:A924:G
8?3
F?3J@
I4;
;A4
:;?<L
9J?=I
FD;A
9
<A4<L
H?2
xyGzzz5

E?F
B9=8
:A924:
@?
8?3
F9=;
;?
>38|
v?24
I4=429JJ8G
>4<93:4
?H
<?2C?29;4
9=@
D=@D7D@39J

>9=L23C;<8
J9F:G
=4;
F?2;A
H?2
9
C42:?=
?2
9
<?2C?29;D?=
<9==?;
>4
=4I9;D74G
DBCJ8D=I
;A9;
JD9>DJD;D4:

<9==?;
4n<44@
9::4;:
D=
B92L4;
79J345

}/0 ~?2
9
:3<<4::H3J
<?BC9=8
;A9;
D:
29CD@J8
4nC9=@D=IG
H?2
4n9BCJ4G
<9CD;9J
?3;J98:
FDJJ
>4
J92I4G

C?::D>J8
J49@D=I
;?
=4I9;D74
<9:A
HJ?F
H2?B
9::4;:5
o=
I4=429JG
FA9;
B9;;42:
D:
FA4;A42
;A4
B?=48
D:

:C4=;
FD:4J8G
=?;
FA4;A42
<9:A
HJ?F
H2?B
9::4;:
D:
C?:D;D74
?2
=4I9;D745



/0 €SgPR_]TUbUcdR\TSRbRTTXRPa\RqT]Rb\ROPSbUcaP[OXR`Tp_b\dRSTR[b^OR\ObSa^OR`bP[RqcTZRq]Tp

?C429;D?=:G
>3;
D;
F?3J@
>4
H9D2J8
?2@D=928
H?2
9
:;92;‚3CG
:?
D;
@4C4=@:5

ƒ/0 ~?2
4n9BCJ4G
DH
9
<?BC9=8
F424
;?
>4<?B4
B?24
4HHD<D4=;
D=
D=74=;?28
B9=9I4B4=;G
;A4
9B?3=;
?H

D=74=;?28
=44@4@
F?3J@
@4<JD=45
1A4
:9B4
BDIA;
>4
;234
DH
;A4
<?BC9=8
>4<?B4:
>4;;42
9;
<?JJ4<;D=I

D;:
24<4D79>J4:5
o=
I4=429JG
9=8;AD=I
;A9;
J49@:
;?
9
@4<JD=4
D=
4=@D=I
et„
24J9;D74
;?
>4ID==D=I

F?3J@
A974
;AD:
4HH4<;5
e4I9;D74
=4;
<9CD;9J
:C4=@D=I
F?3J@
B49=
B?24
J?=I‚JD74@
9::4;:
F424

JDK3D@9;4@
;A9=
C32<A9:4@5



0