Question
Which of the following is generally considered to represent the risk-free return? A) Common stocks B) Small stocks C) Long-term government bonds D) Long-term corporate
Which of the following is generally considered to represent the risk-free return?
A) Common stocks
B) Small stocks
C) Long-term government bonds
D) Long-term corporate bonds
E) Treasury bills
12) A stock asset has a beta of 1.6 and an expected return of 19%. A risk free asset has an expected return of 5%. What is the expected return of a portfolio equally invested in the two assets?
9%
10%
12%
14%
18%
13) All else the same, a LOWER corporate tax rate _____________________.
A) will decrease the WACC of a firm with some debt in its capital structure
B) will increase the WACC of a firm with some debt in its capital structure
C) will not affect the WACC of a firm with some debt in its capital structure
D) will decrease the WACC of a firm with no debt in its capital structure
E) will change the WACC of a firm with some debt in its capital structure, but the direction is unclear.
14) In 1958 the average tuition for one year at an Ivy League school was $1,800. Sixty years later, in 2018, the average cost is projected to be $73,700. What was the growth rate in tuition over the 60-year period?
A) 2.27%
B) 8.36%
C) 6.38%
D) 4.54%
E) 2880%
15) Big Game, Inc. has 8% coupon bonds, with a quarterly coupon, on the market with 24 years left to maturity. If the yield to maturity is 10% and face value is $1,000, what is the bonds current price?
$803.98
$789.42
$1046.78
$818.68
The answers are bold but i need to know how you found the answers
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