Determine the project payment period

Assignment Help Finance Basics

Reference no: EM1360738

1. UVP preferred stock pays $5.00 in annual dividends. If your required rate of return is 13%, how much will you be willing to pay for one share?

2. A project costs $10,000 and is expected to return after-tax cash flows of $3,000 each year for the next 10 years. This project's payment period is ________.

3. ABC services can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. Calculate the NPV if the required rate of return is 12%. (round to the nearest $1.)

4. A project has an initial outlay of $4,000. It has a single payoff at the end of Year 4 of $6,996,46. What is the IRR for the project? (Round to the nearest %).

5. Delta.com has achieved an average return on equity of 36.5% for the last five years. If Delta generates a 17.2% net profit margin on sales of $3 billion and pays no dividends, what is Delta.com's sustainable rate of growth?

a. 4.0% b. 2.8% c. 17.2% d. 36.5%

6. Miller Metalworks had sales in November of $60,000, in December of $40,000, and in January of $80,000. Miller collects 40% of sales in the month of the sale and 60% one month after the sale. Calculate Miller's cash receipts for January.

a. $44,000 b. $56,000 c. $64,000 d. $72,000

7. To compound $100 quarterly for 20 years at 8%, we must use:

a. 40 periods @ 4% b. 5 periods @ 12% c. 10 periods @ 4% d. 80 periods @ 2%

8. How much money do I need to place into a bank account which pays a 6% rate in order to have $500 at the end of seven years?

a. $332.53 b. $381.82 c. $423.77 d. $489.52

9. What is the present value of an annuity of $12 received at the end of each year for seven years? Assume a discount rate of 11%. The first payment will be received one year from today. (Round to the nearest 1$.)

a. $25 b. $40 c. $57 d. $118

10. Huit Industries's common stock has an expected return of 14.4% and a beta of 1.2. If the expected risk-free return is 8%, what is the expected return for the market? (Round to the nearest %).

a. 7.7% b. 9.6% c. 12% d. 13.3%

11. Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and the risk-free rate is 5%. According to CAPM, what is the required return on the stock?

a. 20.62% b. 9.37% c. 14.37% d. 15.62%

12. Marjen stock has a required return of 20%. The expected market return is 15%, and the beta of Marjen's stock is 1.5. Calculate the risk-free rate.

a. 4% b. 5% c. 6% d. 7%

13. You bought Chemtron stock for $45 a year ago. It is selling for $54 today. What is your holding period return?

a. 9% b. 11% c. 6% d. 20%

Reference no: EM1360738

Questions Cloud

Conclusion of a syllogism : If the reasoning from premises to a conclusion of a syllogism is accurate then it is considered valid. Can one come to a false conclusion with a valid syllogism?

How much time passes before it hears anecho : assume the roller coaster (h1 = 32 m, h2 = 11 m, h3 = 20) passes point A with a speed of 3.50 m/s. If the average force of friction is equal to one fifth of its weight, with what speed will it reach point B? The distance traveled is 30m.

Strategic management is important for success : We all know that people don't plan to fail. Often, they just fail to plan and/or their plans are incomplete and inconclusive.

Motivation-emotion in an education setting : Give an explanation of how motivation and emotion are related to change. Then explain how knowledge of this relationship might benefit you being a professional working within an educational setting.

Determine the project payment period : A project costs $10,000 and is expected to return after tax cash flows of $3,000 every year for next ten years. Determine the project's payment period.

Illustrate what is the shutdown level of output : If the market price of suits is constant, illustrate what is the shutdown level of output. What is the minimum price the firm can accept.

Explain there are three steps in the writing process : Explain There are three steps in the writing process and How could MyFoundationsLab® help you achieve better overall writing?

Productive vs unproductive thinking : Example of unproductive thinking within an organization. Detail specific failures in the thinking process and how they could have been avoided.

Write a method to accepts string as parameter : Write a method called wordCount that accepts a String as its parameter and returns the number of words in the String. A word is a sequence of one or more nonspace characters

User Account

All Pages