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Sock Figaro has a standard deviation of 35% and a beta of 0.9. Sock Almaviva has a standard deviation of 30% and a beta of 1.1. This means that:
a. We need to know the risk-free rate to know which will have the highest expected return.
b. Almaviva has the most risk, and Figaro will have the highest expected return.
c. Figaro has the most risk, and both will have the same expected return.
d. Almaviva will always have the highest actual return.
e. Figaro has the most risk, and Almaviva will have the highest expected return.
Based solely on the tax treatment of dividends why might a retired person prefer dividends to capital gains and explain why the Bird-in-the-Hand explanation of dividend policy is a fallacy.
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Suppose you deposit $2,000 today and your account will accumulate to $4,000 in 10 years. what is the nominal annual rate of interest, given semiannual compounding?
airbus sold an a400 aircraft to delta airlines a u.s. company and billed 30 million payable in six months. airbus is
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Assume the following: LC Exposure = 10,000; Spot Rate = $1.00/LC1.00; 1 Year Forward = $0.98/LC1.00; 1 Year Strike Price = $0.975; Premium = $0.005; and WACC = 8.0% p.a. Please calculate the cost of the forward contract and the option.
Wombat+Wombat is a well-established creative design agency located on the East Coast. It has experienced very stable growth in both earnings and dividends over the past 10 years, averaging 7% per annum. If this growth in dividends is expected to cont..
What are the book value and market value of the firm, and 2) if there are 2 million shares of stock in the new corporation what would be the price per share and the book value per share.
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