Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
image text in transcribed
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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: Zvi Bodie, Alan J. Marcus, Alex Kane

6th Edition

0072861789, 9780072861785

More Books

Students also viewed these Finance questions

Question

A coupon for future price reductions

Answered: 1 week ago