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 .