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Fast Exports Inc. has a beta of 1.2, market risk-premium is 7%, and Treasury bonds are currently yielding 5%. Calculate the cost of equity capital

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Fast Exports Inc. has a beta of 1.2, market risk-premium is 7%, and Treasury bonds are currently yielding 5%. Calculate the cost of equity capital using the CAPM approach. 11.7% 14.4% 13.4% 12.6% You are analyzing a spreadsheet where an analyst calculated the NPV, IRR, and Payback period. The results were: NPV =$120,000.IRR=8%, Payback period =4 years. You uncovered that the analyst inputted 2.75 for the company stock's beta instead of 0.75 . Correcting this error will Decrease payback period; leaving others unaffected Increase IRR; leaving others unaffected Increase NPV; leaving others unaffected Increase both IRR and NPV; leaving payback period unaffected. A company had $100,000 in inventories. A flood destroyed all the inventories and the company had no insurance on them, reducing their value to zero on the balance sheet. What is the net (final) effect of these events on the quick ratio? Feel free to give a hypothetical value for current assets to help with the assessment of these events. The quick ratio will increase. The quick ratio will stay the same. The quick ratio will decrease. A company had $100,000 in inventories. A flood destroyed all the inventories. However, the company had full insurance on them and received $100,000 in cash from the insurance company. What is the net (final) effect of these events on the quick ratio? Feel free to give a hypothetical value for current assets to help with the assessment of these events. Quick ratio will stay the same Quick ratio will go down Quick ratio will go up You bought a stock for $100 a share. Right now the stock price is $110, and you still want to hold on the stock. However, you call your broker and instruct the stock to be sold if the share prices go up to $120 or more. What trading order dic you give to your broker? stop buy $120 limit sell at $120 market sell at $120 stop loss at $120

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