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Variable costs are 56 percent of sales, depreciation on the equipment to produce the new board will be $1,510,000 per year, and fixed costs are $1,410,000 per year.
The stock of Ernst Electric has a beta of 1.27. The market risk premium is 8.6 percent and the risk-free rate is 3.7 percent. What is the expected return on Ernst Electric stock?
The expected return for stock A is 14.5 percent, and for stock B it is 9.2 percent. What is the expected rate of return for stock C?
You own a portfolio that consists of $18,000 in stock A, $4,600 in stock B, $13,000 in stock C, and $5,500 in stock D. What is the portfolio weight of stock D?
A stock has a market price of $33.45 and pays a $1.95 dividend. What is the dividend yield?
A project produces cash inflows of $8,300 a year for 4 years. The PI is 1.08 at a discount rate of 12.5 percent. What is the initial cost of the project?
The CFO uses this equation to forecast inventory requirements at different levels of sales: Inventories = $30.2 + 0.25(Sales). All dollars are in millions. What is the projected inventory turnover r
The projected net income from the project is $1,200, $2,300, and $1,800 a year for the next 3 years, respectively. What is the average accounting return?
Which is the better for the firm? The discount rate is 8% and the tax rate is zero.
Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the stock.
Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, which type of risk declines?
Using Yahoo!Finance, calculate the cash coverage ratio for Ford Motor Co. for their 2011 fiscal year. Assume 2011 Depreciation is $0. Yahoo current shows it as blank on the cash flow statement?
A portflio expected return is 12% its standard deviaiton is 20%, and the risk-free rate if 4%. Which of the following would make for the greatest increase in the portfolio's Sharpe ratio?
Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stock, rs, is 11.50%. What is
Which one of the following is an example of a sunk cost?
Zheng Sen wishes to accumulate $1 million by the end of 20 years by making equal annual end - of -year deposits over the next 20 years. If Zheng Sen can earn 10 percent on his investments, how much
Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the average daily sales.
You hold the bond to maturity, but you do not reinvest any of your coupons. What was your effective EAR over the holding period?
A coupon bond paying semiannual interest is reported as having an ask price of 126% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 6%, what is th
Suppose a security will pay $1,000 three years from now. If the appropriate interest rate is 4.00% compounded annually, how much is the security worth today?
Further, you expect that real interest rates will be 3.00 percent annually for the foreseeable future. What is the maturity risk premium on the 6-year Treasury security?
The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.30 between the U.S
A firm will sell an asset in 2 years for $375,000 and it costs $285,000 to produce today. Given an opportunity rate of 16%, will the firm make a profit on this asset? At what rate will the company b
Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. c. Compute the following income statement. d. Should the new cash discount polic
If you obtain such data on a large portfolio of stocks, like those in the S&P 500, find the rate of return on each stock, and then average those returns, this would give you an idea of stock mar