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In: Finance

2. What does it mean for a financial market to be considered informationally efficient and economically...

2. What does it mean for a financial market to be considered informationally efficient and economically efficient ?

3. Do you think investors can earn abnormal returns in financial markets that are at least semi strong form efficient ?

5. What economic functions do financial intermediaries perform?

9.EC needs $141 million to support future growth. If it issues common stop to raise the needed funds EC must pay its investment banker 6% of the issues total value . If EC can issue common stock at a market price of $80 per share, how many shares must be issued so that the company has $141 million after flotation costs to fund the planned growth?

10. JRC must raise $240 million to support operations. To do so, JRC plans to issue new bonds. Investment bankers have informed JRC that the flotation costs will be 4% of the total amount issued. If the market value of each bond is $1,000, how many bonds must JRC sell to net $240 million after flotation costs? Assume the fractions of bonds cannot be issued.

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jeff jeffy answered 8 months ago
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