Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 49 Not yet answered Marked out of 1.00 Flag question A stock produced total returns of 10%, -12%, 20%, and-36% over the past four
Question 49 Not yet answered Marked out of 1.00 Flag question A stock produced total returns of 10%, -12%, 20%, and-36% over the past four years, respectively. What is the average rate of return for this period of time? What is the geometric average return? Select one: a. 2.00%,-0.83% b.-4.50%, 1.37% c. 3.50%, 1.30% d. 3.50%, 2.00% e.-4.50%,-7.14% Question 50 Not yet answered Marked out of 1.00 P Flag question Diversification will NOT reduce the non- systematic risk of your portfolio. Select one: True False Question 51 Not yet answered Marked out of 1.00 Flag question Al's Audio has a cost of debt of 5 percent, a cost of equity of 11 percent, and a cost of preferred stock of 8 percent. The weight for debt is 0.16, the weight for preferred shares is 0.34, and the weight for common stock is 0.5. The company's tax rate is 34 percent. What is the weighted average cost of capital for Al's Audio Shop? Select one: a. 9.45 percent b. 6.14 percent c. 8.75 percent d. 8.98 percent e. 9.15 percent Question 52 Not yet answered Marked out of 1.00 P Flag question Suppose a project costs $400 and produces cash flows of $100 over each of the following six years. What is the IRR of the project? Select one: a 10.0% b. There is not enough information; a discount rate is required C. 24.3% d. 13.0% e. 18.6%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started