• Q : Firm expected rate of return....
    Accounting Basics :

    Question 1: What is the firm's expected rate of return? Question 2: What is the standard deviation and coefficient of variation?

  • Q : Current yield and the capital gain yield....
    Accounting Basics :

    Question: What are the current yield and the capital gain yield? Note: Be sure to show how you arrived at your answer.

  • Q : Determining the corporate bond....
    Accounting Basics :

    Question: What is the yield on a 5-year A-rated corporate bond and on a 10-year Treasury bond? Note: Provide specific examples to support your answers.

  • Q : Present value of winnings....
    Accounting Basics :

    Question: What is the present value of your winnings? Note: Provide specific examples to support your answers.

  • Q : What is the net present value....
    Accounting Basics :

    What is the net present value of a $45,000 project that is expected to have as after tax cash flow of $8,000 for the fifth year? Use a 10% discount rate. Would you accept the project?

  • Q : Find out the break-even ebit....
    Accounting Basics :

    Question: What is the break-even EBIT? Note: Please show how to work it out.

  • Q : Total risk-weighted-assets for credit risk....
    Accounting Basics :

    Question 1: What are the total risk-weighted-assets for credit risk under the Basel I and Basel II advanced IRB approach? Question 2: How much Tier 1 and Tiear 2 capital is required?

  • Q : After-tax cost of debt....
    Accounting Basics :

    Question: If the flotation cost is 5% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield from the amortization of flotation costs.

  • Q : Calculate the default risk premium....
    Accounting Basics :

    Question: Calculate the default risk premium on Nikki G's 10-year bonds. Note: Please show how to work it out.

  • Q : Bank''s return on equity....
    Accounting Basics :

    Estimate what change in interest rates next year would end to the bank's return on equity being reduced to zero.  Assume that the bank is subject to a tax rate of 30%.

  • Q : What is the maximum initial cost....
    Accounting Basics :

    Question: What is the maximum initial cost the company would be willing to pay for the project? Note: Please show how to work it out.

  • Q : Determining the portfolio beta....
    Accounting Basics :

    Question: What is the portfolio's beta? Note: Provide support for your rationale.

  • Q : Compute the return the firm....
    Accounting Basics :

    Question 1: Compute the return the firm should earn given its level of risk. Question 2: Determine whether the manager is saying the firm is undervalued or overvalued.

  • Q : New portfolio beta....
    Accounting Basics :

    You have a portfolio with a beta of 1.65. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of 0.70?

  • Q : Nanometrics required return....
    Accounting Basics :

    Question: What is Nanometrics' required return? Note: Please show how you came up with the solution.

  • Q : Find out the market risk premium....
    Accounting Basics :

    Question: What was the market risk premium during these ten years? Note: Provide support for your rationale.

  • Q : Value of the stock....
    Accounting Basics :

    Question: What is the value of the stock if the required rate of return is 12%?

  • Q : Current dividend per share....
    Accounting Basics :

    Question: If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Note: Provide specific examples to support your answers.

  • Q : Expected returns increased to reflect....
    Accounting Basics :

    Weatherall Enterprises has no debt or preferred stock it is an all-equity firm and has a beta of 2.0. The chief financial officer is evaluating a project with an expected return of 14%, before any r

  • Q : Correlation coefficient between the returns of the two stock....
    Accounting Basics :

    Question: What is the correlation coefficient between the returns of the two stocks? Note: Provide specific examples to support your answers.

  • Q : Find out the stock predicted return....
    Accounting Basics :

    Question 1: What is the stock's predicted return? Note: Provide specific examples to support your answers.

  • Q : Find out the npv of the project....
    Accounting Basics :

    Question 1: What is the NPV of the project? Question 2: What is the NPV if the pretax cost savings are $211,050 per year? Question 3: At what level of pretax cost savings would you be indifferent betw

  • Q : Rationale for recognizing costs....
    Accounting Basics :

    Question 1: Explain the rationale for recognizing costs as expenses at the time of product sale. Question 2: What is the rationale underlying the appropriateness of treating costs as expenses of a p

  • Q : Economic ordering quantity....
    Accounting Basics :

    Question 1: What is the economic ordering quantity? Question 2: What is the total inventory cost at the EOQ level? Note: Please show the work not just the answer.

  • Q : Compute the disbursement float....
    Accounting Basics :

    Question 1: Compute the disbursement float, collection float, and net floats in dollars.

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