What is the debt ratio

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19. ABC Company has a debt-equity ratio of 0.77. What is the debt ratio?

20. ABC, Inc. has 6 percent bonds outstanding that mature in 20 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $814 each. What is the firm's after-tax cost of debt if the tax rate is 21%?

18. A firm has a return on equity of 14.6 percent, a net profit margin of 8.4 percent, and total equity of $553.9. What is the net income? 681.30

10. You want to create a portfolio as risky as the market. Suppose you invest your money in Stocks A, B, C, and the risk-free asset. What is the weight of Stock C in your portfolio?
Stock Weights(%) Beta
A 27 1.2
B 16 0.3
C ? 1.5
Rf ? ?

9. The spot rate for the pound is £0.6681 = $1 and the spot rate for the Canadian dollar is C$1.2209 = $1. What is the £/C$ cross rate?
Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

4. You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.7. What does the beta of the second stock have to be if you want the portfolio to have a beta of 0.61?
Enter your answer rounded off to two decimal points.

Reference no: EM13300057

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