Question
7. Remand Inc. has a beta of 1.45. If the expected market return is 10 percent and the risk-free rate is 2.5 percent, develop a
7. Remand Inc. has a beta of 1.45. If the expected market return is 10 percent and the risk-free rate is 2.5 percent, develop a comprehensive analysis of the risk and find the appropriate required return of Remand (using the CAPM)?
8. Jones Design wishes to estimate the value of its issued Preference shares. The preference issue has an $80par value and pays an annual dividend of $6.40 per share. Similar risk preference shares are currently earning a 9.3% annual rate of return. Read and analyze the risk from the above problem and estimate the market value of the issued preference shares?
9. Analyze the Net Present Value of project (x) when required rate of return is 10%.
YR | CASH FLOW |
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0 | (4000) |
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1 | 2500 |
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2 | 1500 |
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3 | 1800 |
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10. Refer to the problem given in Q9, use your analytical skills to estimate the profitability Index for each project.
can you answers all the questions please now
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