4.What is the expected return, Standard denationand Coeknicient of vanation of an equallywerghted port folLo OF technology, T-bills andinernatin et Funds? tiDW does your Dort folio risk andreturn compane to that Of the Spp500 index? Prob. of state S&P 500Technology T-Bills-15%StateInternational Fund+ 1% GDP.258%5%30%+ 2% GDP.5012%15%15%+ 3% GDP.2516%45%5%0%

Therefore, the expected return for the S&P 500 is 12%. Therefore, the expected return for…

Answered: 4.What is the expected return, Standard…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Destin Company Information: Total Assets $940,000 Total Liabilities $600,000 Cost of debt 5.8% Risk-free rate 1.97% Beta 0.89 Market Return 10% A) Using CAPM, what is cost of equity? (so you are not confused, the opportunity cost of using equity is the return we were expecting to receive on the equity). a)8.03% b)7.77% c) 9.12% d) 8.9% B) What is Destin's Weighted Average Cost of Capital? a) 6.22% b) 5.89% c) 6.07% d) 5.72%
3 nts Problem 07.037 - MIRR calculation For the net cash flow series, find the external rate of return (EROR) using the MIRR method with an investment rate of 21% per year and a borrowing rate of 8% per year. Year Net Cash Flow, $ 1 3,000 The external rate of return is 10.85 %. 2 -9,000 3 -5,000 Return to question 4 8,000 5 -2,500
Use the table for the question(s) below. FCF Forecast (S million) Year Sales 1 270 12.5% 27.00 (5.40) Less Increase in NWC (12% of Change in Sales) 3.60 Free Cash Flow 18.00 Growth versus Prior Year EBIT (10% of Sales) Less: Income Tax (20%) 0 240 OA. $46.15 B. $25.64 OC. $12.82 D. $23.07 2 290 7.4% 29.00 5.80 2.40 20.80 • 3 310 6.9% 31.00 6.20 2.40 22.40 4 325.5 5.0% 32.55 6.51 1.86 2418 Banco Industries expect sales to grow at a rapid rate over the next three years, but settle to an industry growth rate of 7% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. If Banco industries has a weighted average cost of capital of 11%, $30 million in cash, $60 million in debt, and 18 million shares outstanding, which of the following is the best estimate of Banco's stock price at the start of year 1?
Raghubhai
Calculate the Treynor measure of the Tiger Fund. O9.71% O 13.1% 8.56% 55.92% O 3.60%
Year Cash Inflow1 14,0002 19,0003 31,0004 05 06 07 130,000 what is the future value of this cash flow at 3%, 11%, and 18% interest rates at the end of year 7
QUESTION 2: You graduated with Masters in Corporate Governance and the best graduating student for that matter. As a General Manager of your firm did request for the financials of your reputable firm to advise current management on the Key Performing Indicators (KPIs) a Venture Capitalist would look out for before investing in your business in the possible future. The table below is an extract from the financials of NABCO Finance Ltd for the years ended 2020 and 2021 respectively. Details 2020 (GHC) 2021 (GHC) Operating Income 351,800 414,000 Financial expense 100,000 94,000 Net impairment loss, gross loan portfolio 45,000 68,000 Operating expense 97,500 171,000
Using Table 6–13, what is required in new financing if next year’s salesforecast increases to $400,000, profit margin is 10 percent, and the payoutratio is 90 percent?
PW vs Interest Rate 90,000 80,000 70,000 IRR = 9.41% IRR = 20.21% 60,000 %3D 50,000 IRR = 17.26% 40,000 30,000 20,000 10,000 Interest Rate, % -10,000 Do DOT SOLID -20,000 Referring to the graph, write the Decision Table telling which alternative to choose as a function of the interest rate. Present Worth, $
man.1
Sales 4000000s 2. Net incouae 400000s 3. Dividends 240000 4 Debt 400000s 5- Total equity 800000s including 400000S RE 6- Total assets 1400000s Calculate 1- Sustainable Growth rate 2- If the extracted percentage is approved in (1)what is the amount of external financing (the borrower) for the next year. 3- Calculate the growth rate that doesnot require external financing-
A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital: CET1 = 7% Tier 1= 7.50% Tier 1+2= 9% Under Basel 2, what is the maximum, it can pay out in dividends? $0.00 $400,000.00 $800,000.00 $1,200,000.00

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS