The direct cost of bankruptcy typically accounts for 3-4% of the firm’s pre-bankruptcy asset value. The indirect cost of bankruptcy accounts for another 7-10% of the firm’s pre-bankruptcy asset value. The total cost of bankruptcy accounts for 6-8% of the firm’s pre-bankruptcy asset value.  True or False?

Monsters Incorporated (MI) in ready to launch a new product. Depending upon the success of this product, MI will have a value at the end of this year of $120 million, $160 million, or $180 million, with each outcome being equally likely.  The cash flows are unrelated to the state of the economy so that the project has a beta of 0 and a cost of capital equal to the risk-free rate, which is currently 5%.  Assume that the capital markets are perfect except for financial distress costs.  In the event of default, 20% of the value of MI’s assets will be lost in bankruptcy costs. 1.  What is the firm’s initial value? Suppose that MI has zero-coupon debt with a $150 million face value due next year. 2.  What is the value of debt, equity, and the firm with leverage and financial distress? Suppose that MI issues the debt and uses the proceeds to repurchase shares. 3.  The share price following the announcement of the repurchase will be? 4.  What is the cost of financial distress costs to the shareholders (actual value)? We assume that the cost of debt is 12%, the tax rate is 35%, the debt is perpetually rolled over (refinanced), and the risk of the tax shields is just as risky as the debt (and assuming this does not affect the financial distress costs already calculated above)? 5.  What would be the new price per share?  

If the OR is < 1 this describes __.

Jamaican Me Crazy, Inc. (JMC) has $70 million in excess cash and no debt.  The firm expects to generate additional free cash flows of $50 million this year that will grow at 5% in subsequent years; the company will pay out all of these future free cash flows as regular dividends.  JMC’s unlevered cost of capital is 10% and there are 8 million shares outstanding.  JMC’s Board is meeting to decide whether to pay out is $70 million in excess cash as a special dividend or to use it to repurchase shares of the firm’s stock.   1.  What is the company’s current valuation and current price per share? 2.  If the company uses the $70 million to pay a special dividend, what is the approximate amount of that dividend per share and the value of the shares after the dividend? 3.  If instead, the company does a repurchase, how many shares will be purchased, and what is the price per share after the repurchase?

Which characteristics are associated with antiplatelet medications? (Select all that apply.)

A client is 2 hours postoperative from a percutaneous coronary intervention following a STEMI. The client suddenly reports new onset chest pain rated 7 out of 10 that is similar to the pain experienced prior to the procedure. The nurse notes diaphoresis and mild hypotension compared to baseline. Which nursing action is the priority?

A client with pulmonary edema related to end-stage renal disease is experiencing severe dyspnea and anxiety. Morphine is administered intravenously. Which outcome best indicates the medication is achieving its intended therapeutic effect?

Which clinical observation best illustrates the principle that sensory input drives motor output in swallowing?

The nurse is reviewing chemotherapy orders. Which medication places the patient at the highest risk for peripheral neuropathy?

Which statements describe why architectural styles help architects reason about systems?