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Question: What is the standard deviation of the returns on a portfolio that has equal holdings in 50 stocks? Note: Please show the work not just the answer.
Investors expect the market rate of return in the coming year to be 12%. The T-bill rate is 4%. Changing Fortunes Industries' stock has a beta of .5. The market value of its outstanding equity is $1
Question: What is the amount of the cash flow to stockholders? Note: Please show the work not just the answer.
Question: Calculate the net present value of this investment. Assume all flows are at the end of each year. Note: Please provide through step by step calculations.
Question 1: What is the current stock price? Question 2: What will the stock price be in three years?
Question: If the company maintains a constant 4.5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?
Question: What is the price of the preferred stock if the required return is:
Question 1: Perform a complete bond refunding analysis. What is the bond refunding's NPV? Question 2: At what interest rate on the new debt is the NPV of the refunding no longer positive?
Question 1: What was the firm's Economic Value Added (EVA), that is, how much value did management add to stockholders' wealth during 2012?
Question: How much value has McLaughlin's management added to stockholder wealth over the years, i.e., what is McLaughlin's MVA? Note: Provide support for rationale.
Question 1: How many common shares are currently outstanding? Question 2: Write out your answer completely. For example, 5 million shares should be entered as 5,000,000.
Compute the price of the bonds for these maturity dates.
Question: Compute the current price of the bonds if the present yield to maturity is:
Question: If all assets, short-term liabilities, and costs vary directly with sales, how much additional equity financing is required for next year?
Describe the computation of NPV for foreign projects. Explain how to choose currency conversion methods (ie, spot vs forward rates) and domestic or host country interest rates in determining the pro
Question 1: Calculate present value of the program cost without considering the government subsidy. Question 2: Calculate present value of the program cost with the government subsidy.
Question: If the required rate of return is 12 percent, what is the stock's expected price 4 years from today? Note: Show supporting computations in good form.
Question: If the weighted average cost of capital is 15%, what is the firm's value of operations, in millions? Note: Provide support for rationale.
Question: If the weighted average cost of capital is 12%, what is the horizon value (in millions) at t = 5? Note: Show supporting computations in good form.
If the required return is 15 percent and the company just paid a $2.90 dividend, what is the current share price? Note: Provide support for rationale.
Question: Determine the price of the bonds with 15 years remaining to maturity. Note: Please provide through step by step calculations.
Question 1: What is the immediate dilution based on the new corporate shares that are being offered? Question 2: If the stock has a P/E ratio of 23 immediately after the offering, what will the stock
Question: What is their yield to call (YTC)? Note: Show supporting computations in good form.
You are going to receive $200,000 in 50 years. What is the difference in present value betweeen using a discount rate of 15 percent vesus using 5 percent?
Question: If your required return is 6% how much are you willing to pay for a share of this preferred stock? Note: Please show basic calculation