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1. If Bad Boys, Inc. raises capital using 45% debt, 5% preferred stock, and 50% common stock, what is Bad Boys cost of capital?

Points Range: 0 (0%) – 20.7 (20.7%)

Did not submit or incompletely calculated Bad Boys, Inc.’s cost of capital.

Points Range: 21 (21%) – 23.7 (23.7%)

Partially calculated Bad Boys, Inc.’s cost of capital.

Points Range: 24 (24%) – 26.7 (26.7%)

Satisfactorily calculated Bad Boys, Inc.’s cost of capital.

Points Range: 27 (27%) – 30 (30%)

Thoroughly calculated Bad Boys, Inc.’s cost of capital.

2. If Bad Boys, Inc. raises capital using 30% debt, 5% preferred stock, and 65% common stock, what is Bad Boys cost of capital?

Points Range: 0 (0%) – 20.7 (20.7%)

Did not submit or incompletely calculated Bad Boys, Inc.’s cost of capital.

Points Range: 21 (21%) – 23.7 (23.7%)

Partially calculated Bad Boys, Inc.’s cost of capital.

Points Range: 24 (24%) – 26.7 (26.7%)

Satisfactorily calculated Bad Boys, Inc.’s cost of capital.

Points Range: 27 (27%) – 30 (30%)

Thoroughly calculated Bad Boys, Inc.’s cost of capital.

3. In your own words, identify two corporations that have dealt with cannibalization and what steps were taken to overcome the cannibalization. Please provide any citations and references. Please be articulate in your responses.

Points Range: 0 (0%) – 20.7 (20.7%)

Did not submit or incompletely identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Did not submit or incompletely provided citations and references.

Points Range: 21 (21%) – 23.7 (23.7%)

Partially identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Partially provided citations and references.

Points Range: 24 (24%) – 26.7 (26.7%)

Satisfactorily identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Satisfactorily provided citations and references.

Points Range: 27 (27%) – 30 (30%)

Thoroughly identified two corporations that have dealt with cannibalization and what steps were taken to overcome cannibalization. Thoroughly provided citations and references.

4. Clarity, writing mechanics, and formatting requirements

Points Range: 0 (0%) – 6.9 (6.9%)

More than 6 errors present

Points Range: 7 (7%) – 7.9 (7.9%)

5-6 errors present

Points Range: 8 (8%) – 8.9 (8.9%)

3-4 errors present

Points Range: 9 (9%) – 10 (10%)

0-2 errors present

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