Question
SOB Floor Company has a risk premium of 21% and a beta of 3. If the risk free rate is 3%, what should be the
SOB Floor Company has a risk premium of 21% and a beta of 3. If the risk free rate is 3%, what should be the total expected market return?
How much will $20,000 be in 20 years if the bank is paying 10% interest, compounded semiannually?
What will be the population of a country in 12 years if the current population is 24 million and is expected to grow at 5% per year?
You deposit $18,000 into a bank account and wait for 10 years. During the same time, you deposit an additional $50 a month into the bank account for the entire 10 years. If you receive $35,000 from the bank at the end of the 10 years and assuming the interest rate is compounded monthly, what must be the approximate annual interest rate this bank is giving you.
You require an 8% annual return on your investments and face two options. You can get $20,000 10 years later (as a lump sum) or receive $3,000 a year for the next 4 years. How much more valuable is the correct choice?
What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the cost of capital is 14%
An investment which promises cash flows for 4 years, has a positive $4,000 NPV and an initial investment requirement of $30,000 has the following cashflows:
Year 1: 10,000
Year 2: -2,000
Year 3: 20,000
What must be the 4th year's cashflow if cost of capital is 5%?
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