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Phoenix Company common stock is currently selling for $20 per share. Security analysts at Smith Blarney have assigned the following probability distribution to the price of (and rate of return on) Phoenix stock one year from now:
Price Rate of Return Probability
$16 -20% 0.25
20 0% 0.30
24 +20% 0.25
28 +40% 0.20
Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the coefficient of variation for the rate of return on Phoenix stock.
A corporation has just been taken over through new management which believes that it can raise earnings before taxes from $600 to $1,000, merely by cutting overtime pay and thus decreasing cost of goods sold.
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A health insurance policy pays 65 percent of physical therapy costs after a $200 deductible. In contrast, an HMO charges 15 dollar per visit for physical therapy.
Calculate ending inventory and cost of goods sold for each company. How will the difference in cost of goods sold affect net income?
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how much value did management add to stockholders' wealth during 2012? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.
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Objective type Question on Bond yield and Valuation and If the risk-free rate rises by 0.5% but the market risk premium declines by that same amount
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