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Assume that stock gave realized return of= 20% per year over a 2-year time period and a 10% return over the third year. Geometric average annual return is?
2- and 3-year swap rates (expressed with annual compounding) are 11% and 12% per annum. Evaluate the 2- and 3-year LIBOR zero rates.
Calculate the coefficient of variation.
Compute beta of portfolio by using betas and weights of individual stocks in your portfolio. Contrast this figure with the one computed previously. Are they different? Explain why?
If Sidman reinvests retained earnings in projects whose average return is equal to stock's expected rate of return, what will be next year's EPS?
New stock can be sold to public at present price, but flotation cost of= 15% would be incurred. Determine cost of new equity?
Determine Hemingway's present annual corporate tax liability?
Value AOL-Time Warner share by discounting future dividends. Suppose a cost of equity of 12%. Interpret your results.
How many times would AOL require to grow its real earnings over 10 years to give explanation for your result? Suppose 2.5% annual in?ation.
No external equity financing is possible. Determine the internal growth rate?
What would be expected price of UPS stock on this date, if approximate by using method of comparables?
Compute the weighted cost average by using book value weights.
Create suitable portfolio for your old client and evaluate expected return and standard deviation of your old client.
Compute standard Deviations for portfolios AB, AC, BC.
Estimate expected return for each company according to CAPM.
Compute initial outlay at t=0 and net cash flows for years 1-3. The speedy Copy’s marginal tax rate is= 40%.
Briefly give explanation for whether such imitation is probable to achieve CEO’s objective over long term.
Determine Fargo's average collection period? (assume 360 days per year throughout this problem). Find out the film's present receivable balance?
Firm requires addressing where as planning for a merger, which ones would be of main significance in finding the cost of capital?
Briefly describe what are his rights to prepay loan? What are the significant things they have to check?
Needed return is 15%. Determine the project's equivalent annual cost, or EAC?
At same time, weak U.S. growth and increasing foreign competition has generated unacceptably high levels of unemployment in United States. You are the Chair of Federal Reserve. What do you suggest?
What is the probable impact on the typical individual investor if firm undertakes a stock repurchase in lieu of a cash dividend?
Find out the effective annual interest rate if you borrow= $68 million immediately and repay it in 1 year?
Describe what steps might be taken to make sure that investors are getting accurate and whole information to be able to make intelligent investment decisions.