A. A firm decides that it needs to raise Capital to finance its growth plans. If it decides to raise Equity, which of the following would it issue

B.Which of the following describes preferred stock

C.Which of the following represents a non-diversifiable risk facing investors

D.Company A has an expected return of 12% and a standard deviation of 4%

Company B has an expected return of 15% and a standard deviation of 4%.

What is the coefficient of variation of Company A

E.What is the y intercept of the Security Market Line?

Group of answer choices

F.Based on the following information, what is the market required return of the stock using the CAPM model?

the risk free rate is 3%

the market return is 9%

the Beta of the stock is 1.6%

G.Company A has an expected return of 12% and a standard deviation of 4%

Company B has an expected return of 15% and a standard deviation of 4%.

From a risk, return perspective, in which company would someone most likely choose to invest.

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H.Y

ou buy a stock for $73 at the beginning of the year. At the end of the year, you receive a $1.20 dividend, and the price of the stock is $78.

I.Which of the following would you most likely use to value a Growth Stock

J.

A company is planning to invest $20,000 today in order to receive the following cash inflows.

Year 1 5,000

Year 2 8,000

Year 3 10,000

Year 4 6000

If the required return is 10%, what is the IRR of the project?

K.

A company is planning to invest $20,000 today in order to receive the following cash inflows.

Year 1 5,000

Year 2 8,000

Year 3 10,000

Year 4 6000

If the required return is 8%, what is the NPV of this project?

L.

A firm is considering an EXPANSION project.

The project will require a $10,000 equipment investment and an additional $1200 in Working Capital.

This is a 5 year project, and the firm will depreciate the new equipment at a $2000 per year.

The project will result in $4600 per year in additional revenues.

Annual operating costs will increase by $300/year.

At shutdown, the equipment will have no salvage value.

The firm's relevant tax rate is 35%

WHAT IS THE INCREMENTAL INITIAL CASHFLOW?

M.which of the following is an example of a sunk cost

site visits for project selection

salvage value

initial investment costs

depreciation of new equipment

N.

A firm is considering an EXPANSION project.

The project will require a $10,000 equipment investment and an additional $1200 in Working Capital.

This is a 5 year project, and the firm will depreciate the new equipment at a $2000 per year.

The project will result in $4600 per year in additional revenues.

Annual operating costs will increase by $300/year.

At shutdown, the equipment will have no salvage value.

The firm's relevant tax rate is 35%

What is the annual incremental operating cash flow (that is, for one year)

Group of answer choices

$2000

-$600

$4600

Group of answer choices