Construct bar chart of each distribution of rates of return

Assignment Help Financial Accounting
Reference no: EM131052920

Assessing return and risk Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point.

1885_Untitled picture.png

a. For each project, compute: 

(1) The range of possible rates of return. 
(2) The expected return. 
(3) The standard deviation of the returns. 
(4) The coefficient of variation of the returns. 

b. Construct a bar chart of each distribution of rates of return. 

c. Which project would you consider less risky? Why?

Reference no: EM131052920

Questions Cloud

What is the value of this twenty five year lease : What is the value of this 25 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 5%. The discount rate used to evaluate similar leases is 7.5%.
Money market account paying : Mary Spinks currently has $5,750 in a money market account paying 4.37 percent compounded semi-annually. She plans to use this amount and her savings over the next 5 years to make a down payment on a townhouse. She estimates that he will need $15,000..
Percent of accounts receivable method to estimate bad debts : At each calendar-year end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2015, it has outstanding accounts receivable of $55 00, and it estimates that 2% will be uncollectible. Prepare the adju..
Firm is considering expanding it household products division : Your firm is considering expanding its household products division. You iden- tify Procter & Gamble (PG) as a firm with comparable investments. Suppose PGs equity has a market capitalization of $144 billion and a beta of 0.57. PG also has $37 billion..
Construct bar chart of each distribution of rates of return : Assessing return and risk Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probabilities given in the following table summarize the firm's analysis to this point. Construct a bar chart of each dis..
Investment in net operating working capital : Talbot Industries is considerinng launching a new product. The new manufaturing equipment will cost $17 millioon., and production and sales will rquire an initial $5 million investment in net operating working capital. What is the initial investment ..
Risk-averse-indifferent to risk-risk-seeking : Typically investors and corporate managers require greater return when risk increases. This is called being: risk-averse. indifferent to risk. risk-seeking. investment grade.
Balance sheet showed retained earnings : Mints Entertainment, Inc., had Net income of $170,000 and paid dividens of $.25 per share on its 100,000 shares of ourstanding stocks this year. At the end of the year its balance sheet showed retained earnings of $250,000. What was Mints' retained e..
Face value coupon bond with a two-year maturity : Which has a longer Macaulay’s duration: a $1 million face value zero coupon bond with a two-year maturity and a yield of 6 percent, or a $1 million face value coupon bond with a two-year maturity that pays 6 percent coupon interest? Explain your reas..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Question problem

question problem 1nbspnbspnbspnbspnbspnbspnbspnbspnbspnbsppart ain late 2010 the nicklaus corporation was produced. the

  End of the period to measure income properly

A large auto manufacturer sells large fleets of vehicles to auto rental companies, such as Budget and Hertz. Suppose Budget is negotiating with the auto manufacturer to purchase 827 vehicles. Salary expense of $38,000 is accrued at the end of the per..

  What is the carrying value of the asset

Cany Company uses special strapping equipment in its packaging business. The equipment was purchased in January 2013 for $8,000,000 and had an estimated useful life of 8 years with no salvage value. At December 31, 2014, new technology was introduced..

  Question bell video inc bvi is going to be outsourcing its

question bell video inc. bvi is going to be outsourcing its information technology department it. if bvi outsources it

  Comparing current year to prior year sales volumes

Which of the following analytical procedures most likely would be used during the planning stage of an audit? Comparing current year to prior year sales volumes. Reading the financial statements and notes and considering the adequacy of evidence

  Identify an internal control method

Information technology can greatly enhance the processing of transactions and distribution of output from AIS. For the Revenue, Expenditure, and Human Resources / Payroll cycles, identify at least three specific ways (tools) that information technolo..

  Hospitals treatment necessary for which she must pay

When she was 16, Schmidt was involved in an accident and taken to the hospital. Because she was unconscious, the hospital could not contact her parents but provided necessary emergency care for a brain concussion and an open scalp woud. Was the hospi..

  Why would senior manager at quantum products have incentive

Near the end of fiscal 2012, managers had an opportunity to make an investment that would have yielded a return of 14 percent. However, the senior managers did not support making the investment. Why would senior managers at Quantum Products have a..

  Variable factory utility cost per case bottled is closest

A soft drink bottler incurred the following factory utility cost: $3,911 for 850 cases bottled and $3,966 for 1,000 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost p..

  Report for the chief accountant of the australian securities

Report for the Chief Accountant of the Australian Securities and Investments Commission how the respective components of the remuneration could be expected to align the interests of the managers

  1nbspmyron gordon and john lintner believe that the

1.nbspmyron gordon and john lintner believe that the reshyquired return on equity increases as the dividend payout

  Determine the true cash balance

Henderson Company had an unadjusted cash balance of $8,950 as of May 31. The company’s bank statement, also dated May 31, included a $200 NSF check written by one of Henderson’s customers. Determine the true cash balance as of May 31.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd