ACCOUNTING / FINANCE

ACCOUNTING / FINANCE

finance

Le Chiffre Corp. 10-year bonds yield seven percent; Maryland's 10-year Municipal Bonds consistently generate an annualized rotum of 5.02 percent. For an individual Maryland's resident subject to a 30 percent tax rate which investment is more advantageous? The Municipal Bond with an after tax return of 7 percent. The Municipal Bond with an after tax return of 6.526 percent. The Corporate Bond with an after tax return of 7 percent. The Coporate Bond with an after tax return of 4.9 percent The Municipal Bond with an after tax return of 5.02 percent. QUESTION 7 Loewe Lim's preferred stock pays a constantannual dividend of $1.25 per share. How much someone, who requires a 15 percent rate of return on her investments, would be willing to pay for one share? $7.86 $8.33 $10.87 $11.04 $11.38 Which one of the following is a capital structure decision? Should a new expensive facility be purchased to expand future production Should the inventory level be increased? Should debt or equity financing be increased to pay for the firm assets? How could the firm improve customer perception? When should the firm's financial manager retire? QUESTIONS A portfolio has $100,000 invested in Stock A and $200,000 invested in Stock B. If the expected returns on these stocks are 10 percent and five percent, respectively, what is the expected return on this portfolio? 8.8889 percent 5.5556 percent 6.6667 percent 7.5 percent 8.3333 percent