1. Rock company’s stock has a 20% chance of producing a 30% return, a 68% chance of producing a 10% return, and a 12% chance of producing a 16% return. What is the firm’s expected rate of return?
2. Bae Inc. is considering an investment that has an expected return of 43% and a standard deviation of 10%. What is the investment's coefficient of variation
3. Corporation has the opportunity to invest in a new project, the details of which are shown below. What is the Year 1 cash flow for the project?
Sales revenues $105,000
Depreciation $10,000
Other operating costs $35,000
Interest expense $4,000
Tax rate 25.00%