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Use the folloswing information, tokich describes the possible owtcomes froms inesting in a particular esset, to aesoer question 17618 State of the Economy Probability of

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Use the folloswing information, tokich describes the possible owtcomes froms inesting in a particular esset, to aesoer question 17618 State of the Economy Probability of the States Economic recession Moderate economic growth Strong economic growth Percentage Returns 29% 10% 13% 20% 17) The expected retum from investing in the asset is 17) A) 10.55% B)9.00%. C) 10.00% D) 9.35%. 18) The standard deviation of returns is 18) A)8.00%. B) 7.63%. Q27b%. D) 468%. 19) Amy wants to know if inventory is increasing as a percentage of total assets. Which one of these 19) statements most easily provides the information she is seeking? A) Statement of cash flows C) Balance sheet B) Common-size balance sheet D) Income statement 20) 20) Newton, Inc. ust paid an annual dividend of $2. Their dividends are expected to increase by 4% annually. Newton Company stock is selling for $20 a share. What is the required rate of return on this stock implied by the dividend-growth model? A) 14.4% B) 14,0% C) 12.2% D) 13.9% 21) 21) The expected retum on the market portfolio is currently 11%. Batmobile Corporation stockholders of return of 23.0%, and the stock has a beta of 2.5. According to CAPM, determine the require a rate risk-free rate A)3.0% B) 275% 17.5% D) 9.2% 22) 22) Long Life Floors just paid an annual dividend of $1 a share and plans on increasing future dividends by 5 percent annually. The discount rate is 15 percent. What will the value of this stock be 4 years from todayB) 18.36 17.49 D) 10.5 A) 12.76 23) 23) You are evaluating a capital project, and have projected these cash flows: Year Projected Cash Flow 5300 5800 You will discount the expected cash flows at a rate of 14%, what is the total present value of the project's cash flows? C) $701.75 D) $461.68 B) $1,839.59 A) $1,365.93

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