1)Healthy Foods just paid its annual dividend of 1.45 a share.
The firm recently announced that all futures dividends will be
increased by 2.8 percent annually? What is one share of this stock
worth to you if you require a 14 percent rate of return?
2)Managers at firm y believe that project x will reduce the
Betas of the firms common stock. Currently the opportunity cost of
capital for the firm is 8%. The discount rate that managers should
use to evaluate project x should be less than 8%
3)Diversifying a portfolio across various sectors and industries
might do more than one of the following. However, the
diversification must do which of the following?
Increase the expected risk premium
Reduce the beta of the portfolio to zero
Increase the securityA????1s risk premium
Reduce the portfolioA????1s systematic risk level
Reduce the portfolioA????1s unique risk
4)A firm has a cost of equity of 13 percent, accost of preferred
of 11 percent, and an after-tax cost of debt of 6 percent. Given
this, which one of the following will increase the firms weighted
average cost of capital?
Increase the firms tax rate
Issuing new bonds at par
Redeeming shares of common stock
Increasing the firms beta
5)If the cost of equity capital is positively correlated with a
firms Beta then which firm has a higher cost of equity (Use Yahoo
finance as your source for Beta).
6)An increase in the rate of return in a recessionary
An increase in the probability of an economic boom
A decrease in the probability of a recession occurring
A decrease in the probability of an economic boom
An increase in the rate of return for a normal economy
7)Which one of the following portfolios will have a beta
A portfolio that is equally as risky as the overall market
A portfolio that consists of a single stock
A portfolio comprised solely of U.S. Treasury bills
A portfolio with a zero variance o returns
No portfolio can have a beta of zero
8)Ted is trying to decide what cost of capital he should assign
to a project. Which one of the following should be his primary
consideration in this decision?
Amount of debt used to finance the project
Use, or lack thereof, of preferred stock to finance the
Mix of funds used to finance the project
Risk level of the project
Length of the projectA????1s life
9)The common stock of modern interiors has a beta of 1.61 and a
standard deviation of 27.4 percent. The market rate of return is
13.2 percent and the risk free rate is 4.8 percent. What is the
cost of equity for this firm?
10)Which one of the following is most apt to cause a wise
manager to increase a project cost of capital? Assume the firm is
Management decided to issue new stock to finance the project
The initial cash outlay requirement is reduced
She learns the project is risker than previously
The after tax cost of debt just decreased
The project life is shortened.
11)GRUBHUB common stock was offered to the public at 26 per
share on April 14,2014
This question was answered on: Dec 08, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Dec 08, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.