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Need assistance please. Have an hour left to submit. Cooley Company's stock has a beta of 1.60, the risk-free rate is 2.25%, and the market

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image text in transcribed Cooley Company's stock has a beta of 1.60, the risk-free rate is 2.25%, and the market risk premium is 5.50%. What is the firm's required rate of return? 9.83% 10.39% 11.05% 9.28% 13.81% Returns for the Dayton Company over the last 3 years are shown below. What's the standard deviation of the firm's returns? (Hint: This is a sample, not a complete population, so the sample standard deviation formula should be used.) Year 2011 2010 2009 Return 21.00% -12.50% 17.50% 14.18% 18.41% 17.49% 20.99% 17.31% Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? State of the Economy Boom Normal Recession 0.4355 Probability of State Occurring 0.27 0.50 0.23 Stock's Expected Return 25% 15% 5% 0.4813 0.4584 0.5501 0.3667 You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. What will the portfolio's new beta be? 0.943 1.162 1.150 0.874 1.208 Bay Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D = $1.25). The stock sells for $21.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? 5.34% 4.69% 5.44% 5.86% 5.01% The Francis Company is expected to pay a dividend of D = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.55, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price? $18.97 $23.18 $19.54 $19.16 $14.75 Nachman Industries just paid a dividend of D0 = $4.25. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value? $147.35 $144.46 $127.13 $119.90 $153.13 A company's perpetual preferred stock currently sells for $125.00 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock? 5.12% 5.46% 7.28% 6.74% 7.61% You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 16.50%. The firm will not be issuing any new stock. What is its WACC? 8.87% 12.15% 13.25% 8.32% 10.95% Anderson Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: 8.50% Year 0 1 2 3 Cash flows -$1,000 $500 $500 $500 $337.95 $277.01 $324.10 $335.18 $243.77 Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,175.00. (2) The company's tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? 6.59% 10.53% 8.56% 7.62% 6.51% Warr Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year Cash flows 0 -$1,500 1 $400 2 $400 3 $400 4 $400 3.26% 3.21% 2.40% 2.63% 3.19% Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$800 $500 $500 $500 1.26years 1.63years 1.22years 1.70years 1.60 years Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: Year Cash flows 13.25% 0 -$1,000 1 $450 2 $450 3 $450 19.10% 15.40% 16.32% 17.25% 15.09% Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: Year Cash flows 10.00% 0 -$625 1 $500 2 $500 3 $500 1.30years 1.41 years 1.58years 1.09years 1.07years Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $70.00 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected yearend dividend, D ? $3.12 $2.98 $2.23 $3.42 $2.83

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