Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Which one of the following will decrease the after-tax cost of debt for a firm?
an increase in tax rates
changing the firm's bond rating from A to B
an increase in the risk-free rate of return
an increase in the risk level of the firm
2. The beta of a diversified portfolio is equal to the _____ of the betas of the individual securities that comprise the portfolio.
arithmetic average
summation
weighted average
geometric average
A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while fixed cost will be $450,000. The first year's sales estimates are $1,250,000. The cost to start up this restaurant will be ..
If the average P/E multiple for comparables is 15 and the company you want to value has expected earnings per share of $2, what is the estimate of this company's price per share of stock?
Calculate the? 95% confidence intervals for the four different investments included in the following table. Small Stocks ?S&P 500 Corporate Bonds ?T-Bills. The? 95% confidence interval of small stocks is between ____% and ____%. ?
The following annual inflation rates have been forecast for the next 4 years Year 1, 3% inflation, Year 2, 4% inflation, Year 3. 6% inflation, Year 4. 8%, Use the average annual inflation rate and 3 percent real rate to calculate the appropriate cont..
Using the Capital Asset Pricing Model, how do we arrive at a beta?
In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. What is the target stock price in five years?
Carefully explain and differentiate what is meant by market capitalization of the firm,
Company A sells machinery to Company B. Company B agrees to pay Company A $300,000 at the end of each of the next 6 years, with discount rate 6%. provide a clear calculation to determine the first year of Present value of cash flow. provide a clear c..
What two factors affect the return on short-term investments? What investments should you consider to achieve liquidity and an adequate return?
Essary Enterprises has bonds on the market making annual payments, with ten years to maturity, a par value of $1,000, and selling for $968. At this price, the bonds yield 6.9 percent. What must the coupon rate be on the bonds?
IFix, a technology company, is evaluating the purchase of stock in Repair Me . The risk free rate of return is 5%, the required rate on a market portfolio of stocks is 10%, the expected rate of return on Repair me stock is 13% and its market beta is ..
Zachary L. and Cici K. Mao reside at 520 Chestnyt Street, Philadelphia, Pennsylvania 19160. They are both under 65 years old and have one dependent (their son, Oliver, age 4). They do not wish to take advantage of the presidential election campaign c..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd