What is the variance of the returns on rtf

Assignment Help Finance Basics
Reference no: EM131061200

The following probability distribution refers to expected outcomes for RTF, Inc. under two economic states:

Economy

Probability

Outcome

Boom

60%

15%

Recession

40%

3%

What is the variance of the returns on RTF?

Reference no: EM131061200

Questions Cloud

What is its pretax cost of debt : Buddy Corp. has a target debt-equity ratio of 0.60. Its WACC is 10.5% and the tax rate is 30%. If the company's cost of equity is 16.5% what is its pretax cost of debt?
What is the firms WACC when the capital weightings : If the cost of equity for Flower Corp is 11% and with the knowledge that Flower's current YTM is 7% and its coupon rate is 10%, what is the firm's WACC when the capital weightings are as follows: Common equity= 40%, Debt= 60%. Assume a 35% tax rate.
What is the expected one-year ppp spot rate : What is the expected one-year PPP spot rate?  What is the expected percent appreciation/depreciation of the British Pound?
Calculate the aftertax cash flows for first year for bond : Suppose your company needs to raise $35 million and you want to issue 20-year bonds for this purpose. Assume the required return on your bond issue will be 8 percent, and you’re evaluating two issue alternatives: How many of the coupon bonds would yo..
What is the variance of the returns on rtf : The following probability distribution refers to expected outcomes for RTF, Inc. under two economic states: What is the variance of the returns on RTF?
Identify two methods needed to avoid restriction limits : "The Financial Plan" Please respond to the following: Identify at least two methods needed to avoid restriction limits. Discuss the major challenges that you believe the public will encounter as a result of the proposed budget.
What is the stock expected price three years : $35.50 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 4.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today?
What is your net profit on the option : You have purchased a put option on Pfizer common stock. The option has an exercise price of $44 and Pfizer’s stock currently trades at $46. The option premium is $0.50 per contract. What is your net profit on the option if Pfizer’s stock price does n..
Identify three u.s. foreign policy issues : Identify three U.S. foreign policy issues and why you support or oppose them. You can use information from the lectures, the textbook Chapter on Foreign Policy, the attached reading from Michael Parenti, and also information from the film clips a..

Reviews

Write a Review

Finance Basics Questions & Answers

  Recent news article concerning a whistle blower

Find a recent news article concerning a whistle blower. What was the issue? What was the outcome? How could it have been handled differently? Please provide a link to the article.

  Watching the water park episode

Directions: After watching the "Water Park" episode of Malcolm in the Middle, write an essay that answers the following questions.

  The company has a target capital structure of 50 percent

Southern Alliance Company needs to raise $23 million to start a new project. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 50 percent common stock, 8 percent preferred st..

  What is swimkidss margin of safety

Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $87,200. Swimkids expects sales of $280,800 next year. What is Swimkids's margin of safety?

  What is the irr on the project if the required going-in

with a purchase price of 350000 a warehouse provides for an initial before-tax cash flow of 30000 which grows by 6

  What profit margin must the firm achieve

McCormac Co. wishes to maintain a growth rate of 12 percent a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30 percent. The ratio of total assets to sales is constant at .75.

  Computation of probability of payment

Computation of probability of payment and determine the probability of payment that would make Rockwell indifferent between granting credit and the present policy

  Discuss the effect on stock market investor confidence

discuss the effect on stock market investor confidence should bank customers individuals and businesses alike lose

  Asume riskiness of stock decrease which causes required

california clinic an investor-owned chain of ambulatory care clinics just paid a dividend of 2 per share. the firms

  Write a brief essay describing the benefits of maintenance

write a brief essay describing the benefits of maintenance planning in detail..of the six planning principles described

  Define the term independent variable

Define the term independent variable and identify the independent variable for this study. Describe the scale of measurement used for the independent variable.

  Liabilities form part of a company

1. Which of the following liabilities form part of a company's "real" activities?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd