MC are combined in a portfolio with 50 % of the funds invested in each, calculate the expected return on the portfolio.
The market value of XYZ Corporation ' s common stock is 40 million and the market value of the risk-free debt is 60 million. The beta of the company ' s common stock is 0.8, and the expected market risk premium is 10 %. If the Treasury bill rate is 6 %, what is the firm ' s cost of capital?( Assume no taxes.)
The following are important functions of financial markets: I) Source of financing; II) Provide liquidity; III) Reduce risk; IV) Source of information
Which of the following portfolios have the least risk?
Present Value of $ 100,000 that is, expected, to be received at the end of one year at a discount rate of 25 % per year is:
Discuss some of the disadvantages of the payback rule.
What is the relationship between interest rates and bond prices?
Spill Oil Company ' s stocks had-8 %, 11 % and 24 % rates of return during the last three years respectively; calculate the average rate of return for the stock.
Which of the following statements regarding the discounted payback period rule is true?
The NPV value obtained by discounting nominal cash flows using the nominal discount rate is the: I) same as the NPV value obtained by discounting real cash flows using the real discount rate II) same as the NPV value obtained by discounting real cash flows using the nominal discount rate III) same as the NPV value obtained by discounting nominal cash flows using the real discount rate
Market risk is also called: I) systematic risk, II) undiversifiable risk, III) firm specific risk.