Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

estion: Calculate the weighted average cost of capital (WACC) for PDI. E/V80.00% Cost of equity9.40% Risk-free rate 3.00% Beta 1.28 Market equity risk premium 5.00%

image text in transcribedimage text in transcribed

estion:

Calculate the weighted average cost of capital (WACC) for PDI.

E/V80.00%

Cost of equity9.40%

Risk-free rate 3.00%

Beta 1.28

Market equity risk premium 5.00%

D/V20.00%

Cost of debt4.00%

Corporate tax rate40.00%

WACC 80% x 9.40%) + [20% x 4% x (1 - 40%)]= 8.00% WACC = (E/V x Re) + ((D/V x Rd) x (1 - T))

*Cost of equityRisk free rate of return + (Beta * Risk premium) = 3% + (1.28 x 5%) 0.094

Givend the above, I cannot get the following:

Sum of FCF PV =?

Terminal value =?

Present value of terminal value =?

Total value of PDI =?

Assumptions

Discount rate ?

Terminal value ?

image text in transcribedimage text in transcribedimage text in transcribed
Which of the following is an advantage of multivariate correlational research over bivariate correlational research? O Bivariate correlational studies help address internal validity, whereas multivariate correlational studies do not. Multivariate correlational studies establish covariance, whereas bivariate correlational studies do not. O Some multivariate correlational studies help to address temporal precedence, whereas bivariate correlational studies do not. Multivariate correlational studies help to address external validity, whereas bivariate correlational studies do not.4. Consider a discrete-time Markov chain with the following probability transition matrix 0 0 0 0 7 1-3-y P = 1-I-VVO T 0 0 1 0 Is it possible to choose values for a and y so that the Markov chain has the following properties? In each case, state the values of a and y, or give a brief reason why it is not possible. (a) The Markov chain has period 2. [2) (b) The Markov chain is reducible. (c) The Markov chain has at least one transient state. UNN (d) The Markov chain has invariant distribution (1/4, 1/4, 1/4, 1/4).Problem 7.4 (10 points) A Markov chain X0,X1, X2, . . . with state space S = {1, 2, 3, 4} has the following transition graph: (a) Provide the transitiOn matrix fer the Markov chain. (13) Determine all recurrent and all transient states

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Analysis For Quantitative Finance

Authors: Daniele Ritelli, Giulia Spaletta

1st Edition

1351245104, 9781351245104

More Books

Students also viewed these Mathematics questions