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What is expected standard deviation of the stock
: You are interested in buying a stock that has a price of $42. You have projected that next year there is: a 10% probability the stock will equal $1, a 20% probability the stock will equal $31, a 30% probability the stock will equal $43, a 30% probabi..
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What is market value of the bond and yield to maturity
: Cornerstone Industries has a bond outstanding that has a 5% coupon paid semiannually and a market price of $927.64. If the bond matures in 5 years, what is the yield to maturity? J&J Manufacturing just issued a bond with $1,000 face value and 4.5% co..
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Which loan has the lower after-tax cost
: Karou is considering different options for financing the $12,000 balance on her planned new car purchase. The cheapest advertised rate among the local banks is 7 percent for a 48-month car loan. Which loan offers lower monthly payment? Which loan ha..
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What is its self-supporting growth rate
: Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,700,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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How much will be in the account at end of that time period
: Johnny plans on depositing $8,000 into an account earning 3% per year at the end of each of the next 15 years. How much will be in the account at the end of that time period?
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The net present value of this project given required return
: A project will produce operating cash flows of $45,000 a year for four years. During the life of the project, inventory will be lowered by $30,000 and accounts receivable will increase by $15,000. At the end of the project, net working capital will r..
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What is the alpha of widget manufacturing
: Widget Manufacturing, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1% and the market return is 8.5%. What is the Treynor measure of Widget Manufacturing, Inc.? Widget Manufacturing,..
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Half year straight line depreciation method
: Consider a project that has 6 years of life time. This project requires investment of $1,000,000 at time zero for machinery and equipment to be depreciated over 5 year with half year straight line depreciation method (starting in year 1 to year 6). C..
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About the risk of investing in badger championship
: Assume Badger Championship, LLC has a CAPM beta of 0, the risk free rate is 1.0%, and the expected return on the market portfolio is 8.2%. You also know that Badger Championship, LLC has a standard deviation of 38.2%. Given its standard deviation and..
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