What is the firm expected rate of return

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1. Freeport Company’s stock has a 20% chance of producing a 30% return, a 60% chance of producing a 12% return, and a 20% chance of producing a 18% return. What is the firm’s expected rate of return?

2. Project L costs $64,943.28, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 13%. What is the project's IRR? Round your answer to two decimal places.

3. BCC has issued 9^5/8 percent debentures that will mature on July 15, Year 28. Assume that interest is paid and compounded annually. If an investor purchased a $1,000 denomination bond for $1,045 on July 15, Year 1, determine the bond’s yield-to-maturity.

Reference no: EM132011737

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