Economics Homework Help

Please review the file labeled “Supplemental Examples for Ch. 12 and 13” and qualitatively discuss the following examples:

Examples 1, 2, 3, 7 and 8 in Ch. 12 and example 1 in Ch. 13.  For examples 1-3 in Ch. 12, assume the net cash flow is $2,000,000 and the tax rate is 40%. In examples 1 and 2 in Ch. 12, assume that the cost of common equity is 10% which is computed using the CAPM equation.