Problem 13-21 (Algo) Increasing risk over time [LO13-1] The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others. Year 1 Year 5 Cash Inflow Probability Cash Inflow Probability 0.40 $ 80 0.35 0.20 110 0.30 0.40 140 0.35 $.90 110 130 Year 1 Year 5 Year 10 Year 10 Cash Inflow Probability 0.30 0.40 0.30 The expected value for all three years is $110. Compute the standard deviation for each of the three years. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Standard Deviation. $70 110 150
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity
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Problem 13-21 (Algo) Increasing risk over time [LO13-1]
The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread
over time to reflect delayed benefits. Each year is independent of the others
Year 1
Cash Inflow Probability Cash Inflow
0.40
$.90
110
130
0.20
0.40
Year 1
Year 5
Year 10
5.80
110
140
Standard Deviation
Year 5.1
Year 19
Probability Cash Inflow
0.35
$ 70
110
150
0.30
0.35
The expected value for all three years is $110.
Compute the standard deviation for each of the three years.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Probability
0.30
0.40
0.30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2c84aa9-38e6-4ae3-a0cc-a4c37525a343%2F67a8dc0d-6ddd-4592-84fd-eccde7e2234d%2Ft7h22kk_processed.jpeg&w=3840&q=75)
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