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please help this is a timed assignment and don't understand the concept. QUESTION 1 1. The standard deviation measures: diversifiable risk systematic risk economic risk

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please help this is a timed assignment and don't understand the concept.

image text in transcribed QUESTION 1 1. The standard deviation measures: diversifiable risk systematic risk economic risk unsystematic risk total risk 1 points QUESTION 2 1. The beta of a market portfolio is: 1.5 1 infinit e 2 0 1 points QUESTION 3 1. The risk-free rate is 4.5%, the market risk premium is 8.5%, and the stock's beta is 1.08. What is the cost of common stock (Ke)? Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 4 1. ABC Inc. is considering an investment of $1,022 million with after-tax cash inflows of $287 million per year for six years and an additional after-tax salvage value of 13 million in Year 6. The required rate of return is 8%. What is the investment's Profitability Index (PI)? Enter your answer rounded off to two decimal points. 1 points QUESTION 5 1. What is the Profitability Index (PI) of this project if the required rate is 18%? Year 0 1 2 3 4 5 CF -$2,889 $1,252 $1,110 $1,445 $506 $925 Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 1 points QUESTION 6 1. You have a $57,992 portfolio that consists of $15,128 invested in Stock A, $14,012 invested in Stock B, $1,100 invested in Stock C, and the remainder in Stock D. The portfolio has a return of 18.3 percent. The return for Stock A is 10.2 percent, for Stock B is 31.8 percent, and for Stock C is 13.2 percent. What is the return for Stock D? Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box.z 1 points QUESTION 7 1. What is the project's initial investment outlay based on the following information: The machinery could be purchased for $29,501. Shipping and installation costs would cost another $9,450. The project would require an initial investment in net working capital of $5,158. The company's tax rate is 30%. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 8 1. What is the NPV of this project if the required rate is 11%? Year 0 1 2 3 CF -$1,796 $675 $1,766 $1,318 Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 9 1. A 12-year project is expected to generate annual sales of $252,422, variable costs of $44,161, and fixed costs of $42,730. The annual depreciation is $12,288 and the tax rate is 27 percent. What is the annual operating cash flow? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 10 1. Five years ago, ABC Company invested $44,462 million in a machinery. The investment in net working capital was $4,992 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $17,095 million. The book value of the machinery is $23,369 million. The tax rate is 35 percent. The operating cash flows in Year 5 are 6,729. What are the project's Year 5 cash flows? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 11 1. A project has an initial requirement of $87,290 for equipment. The equipment will be depreciated to a zero book value over the 5-year life of the project. The investment in net working capital will be $17,645. All of the net working capital will be recouped at the end of the 5 years. The equipment will have an estimated salvage value of $18,253. The annual operating cash flow is $41,591. The cost of capital is 8 percent. What is the project's net present value if the tax rate is 38 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 12 1. Suppose the nominal rate is 13.08% and the inflation rate is 5.24%. Solve for the real rate. Use the Fisher Effect formula. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 13 1. One year ago, you puchased 119 shares of ABC stock for $43.07 per share. During the year, you received a dividend of $6.04 per share. Today, you sold all your shares for $57.87. What are the percentage return on your investment? Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box. 1 points QUESTION 14 1. Based on the following information, what is the portfolio beta? Stoc Value k $47,5 A 70 $25,1 B 06 $30,6 C 08 $30,7 D 87 Beta 1.14 1.88 0.72 3.38 2. Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box. 3. 1 points QUESTION 15 1. You have invested $79,521 portfolio in three securities. The three securities comprise of the risk-free asset, Stock A, and Stock B. The beta of stock A is 2.2 while the beta of stock B is 0.5. 30% of the portfolio is invested in the risk-free security. What is the dollar amount invested in stock B if the beta of the portfolio is 1.1? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 16 1. Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7 percent, 8 percent, 2 percent, and -11 percent, respectively. What is the standard deviation of these returns? Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points QUESTION 17 1. ABC Company purchased a new machinery 4 years ago for $55,029. Today, it is selling this equipment for $18,048. What is the after-tax cash flow from this sale if the tax rate is 20 percent? The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 18 1. ABC Company is considering a new project. The project is expected to generate annual sales of $77,797, variable costs of $17,848, and fixed costs of $12,138. The depreciation expense each year is $17,111 and the tax rate is 30 percent. What is the annual operating cash flow? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 19 1. ABC Company is considering an investment that will cost the company $574 at time=0. The after-tax cash flows are expected to be $81 each year for 8 years. What is the payback period? Enter your answer rounded off to two decimal points. 1 points QUESTION 20 1. An investor puts $20,000 in a risk-free asset and $40,000 in the market portfolio. Compute the beta of his portfolio. 1 0.3 3 2 0.6 7 0.5 0 1 points QUESTION 21 1. If a security's intrinsic value is higher than its market value, the security appears to be _________________________. overvalue d fairly valued undervalu ed 1 points QUESTION 22 1. What is the internal rate of return (IRR) of this project given the following cash flows? Year 0 1 2 3 4 5 CF -$2,200 $ 900 $ 800 $ 600 $ 700 $1,090 Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12.345% then enter as 12.35 in the answer box. 1 points QUESTION 23 1. ABC Company purchased a 3-year MACRS property for $84,597 3 years ago. What is the current book value of this equipment? The MACRS allowance percentages are as follows, starting with year one: 33.33, 44.45, 14.81, and 7.41 percent. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points QUESTION 24 1. Based on the following cash flows, calculate the payback period. Year 0 1 2 3 4 5 CF -$1,358 $369 $220 $92 $356 $530 Enter your answer rounded off to two decimal points. 1 points QUESTION 25 1. ABC Company has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 7 years, and have a 8 percent coupon. The current price of the bond is $900. What is the yield to maturity? Enter yur answer in percentages rounded off to two decimal points. Do not enter % in the answer box. 1 points QUESTION 26 1. ABC, Inc. has bonds outstanding that mature in 25 years. The annual coupon rate is 4%. The bonds pay interest annually and have a face value of $1,000. Currently, the bonds are selling for $900. What is the yield to maturity? Enter your answer as a percentage rounded off to TWO decimal points. 1 points QUESTION 27 1. A project requires $82,832 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box. 1 points S AV E A N D S U B M I T Click Save and Submit to save and submit. Click Save All Answers to save all answers

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