Reference no: EM133120320
1. The rate of return on the U.S. government treasury bill is 0.05 and the expected rate of return on the Wilshire 5000 is 0.07. What is the required rate of return for a stock with a Beta 1.08.
2.Menger Corporation has a 0.3 probability of a return of -0.01, a 0.4 probability of a rate of return of 0.07, and the remaining probability of a -0.20 rate of return. What is the expected rate of return of Menger Corporation.
3. Hayek Corporation has a 0.5 probability of a return of 0.67, a 0.2 probability of a rate of return of 0.08, and the remaining probability of a 0.00 rate of return. What is the variance in the expected rate of return of Hayek Corporation.
4. Consider a company financed with 0.6 equity, 0.0 preferred stock, and the remaining debt subject to a corporate tax rate 0.5 If the required rate of return on the debt is 0.08, on the preferred stock is 0.10 and on the common stock is 0.15, what is the working average cost of capital for this company.
5. A stock is trading for 19, and just paid a dividend of 1.2 which is expected to grow at a fraction 0.15 per year. If Goldman Sacs charges a fraction 0.17 as a flotation cost, what is the required rate of return on a new stock issue.
6. What is the Net Present Value (NPV) of the following set of cash flows if the cost of capital is 0.12.
7. Consider a company subject to a corporate tax rate of 0.6. If the company has a debt ratio of 0.4, and an unleveraged beta of 0.9, what is the company's leveraged beta.
8. A company has an un-leveraged value of 3,000,000 and debt 300,000. If the company is subject to a corporate tax rate of 0.30, and investors in the company are subject to a tax rate of 0.00 on equity income and 0.05 on debt income, what is the company's value.
|
Leading change when business is good:
: Identify one thing during that time that you could have improved from good to great. Identify the values present in your situation.
|
|
Coworker outstanding sales performance
: You are informed of your coworker's outstanding sales performance.
|
|
Business eithcs
: Walter Pavlo ends the video saying that he is no different than most of us and that we could do the same thing that he did. Do you agree? Why or why not?
|
|
Amount of average annual depreciation
: In 2018 the firm of Dewey Cheatum and Howe had an ARR of 7% The average investment was $300,000 and the annual operating cash flow was $ 28,700. What was the am
|
|
What is the required rate of return for a stock
: 1. The rate of return on the U.S. government treasury bill is 0.05 and the expected rate of return on the Wilshire 5000 is 0.07. What is the required rate of re
|
|
About personal branding-social networking
: Learning activities about personal branding-social networking, and your reading about mentoring, you will apply these concepts to your career based on stated go
|
|
Find the optimal portfolio
: Discuss the efficient frontier and supported by the indifference curve and the Capital market Line (CML) how to find the optimal portfolio. Support with the dia
|
|
Evaluate the roa for stocks
: Joanna is a financial analyst in CCB Investment Bank and she is responsible to monitor the firm funds and her clients' funds. The firm has RM200 million funds a
|
|
Welcome to applied learning practicum
: Briefly explain any steps you are taking, or plan to take, to gain hands-on experience in your program of study.
|