Risk Swan's Sportswear plans to launch a line of designer jeans with the help of one well-known designer. Because of the highly competitive nature of the industry, the line of jeans has been given a code name, Stretch. Swan's market research has established a forecast shown in the following table. . Use the table to calculate the average return for the line. The average return for the line is %. (Enter as a percentage and round to two decimal places.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Market acceptance Probability Very poor Poor Annual rate of return 0.08 - 0.017 0.19 0.039 Average Good 0.46 0.074 0.18 0.115 Excellent 0.09 0.166

Risk Swan's Sportswear plans to launch a line of designer jeans with the help of one well-known designer. Because of the highly competitive nature of the industry, the line of jeans has been given a code name, Stretch. Swan's market research has established a forecast shown in the following table. . Use the table to calculate the average return for the line. The average return for the line is %. (Enter as a percentage and round to two decimal places.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Market acceptance Probability Very poor Poor Annual rate of return 0.08 - 0.017 0.19 0.039 Average Good 0.46 0.074 0.18 0.115 Excellent 0.09 0.166

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

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Please refer to the attached image. Here is the question: Using the exponential smothing model with an alpha of 0.2 and a smoothed forecast for period 1 of 350, what is the forecast for period 3?
In early 2019, the following information was true about Abercrombie and Fitch (ANF) and The Gap (GPS), both clothing retailers. Values (except price per share) are in millions of dollars. a. What is the market-to-book ratio of each company? b. What conclusion do you draw from comparing the two ratios? a. What is the market-to-book ratio of each company? The market-to-book ratio for ANF is enter your response here . (Round to two decimal places.) Part 2 The market-to-book ratio for GPS is enter your response here . (Round to two decimal places.) b. What conclusion do you draw from comparing the two ratios? (Select from the drop-down menus.) It implies that the market has a more favorably outlook on ▼ than on ▼ .
am. 133.
Project II is an inventory-control system, with an IRR of 10.60% & a beta of 0.90. Incredible Corp. has two divisions: Silver Group & Blue Group. Both groups are considering implementing Project II. Silver Group makes health products and has an asset beta of 1.20. Blue Group is a mining operation with an asset beta of 0.70. The risk-free rate is 3.00%; the expected return on the market is 11.00%. Explain clearly and concisely whether each division should accept or reject Project II, being sure to justify your reasoning.
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please show steps in excel
You have collected the following NH-NL indicator data: . If you are an technician following a momentum-based strategy, are you buying or selling today? A momentum-based trader would be selling because the NH-NL indicator indicates that new lows are now outpacing new lows, with a continuing strong upward trend. (Select from the drop-down menus.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Day NH-NL Indicator 1 (yesterday) 104 2 99 3 61 10 4567806 42 -18 -43 -80 -84 9 -91 -69 - ☑
Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm's equity beta is 1.40, the risk-free rate is 2.35 percent, and the market risk premium is 6.0 percent. Dividends per share Return on equity Book value per share 2021 value per share Average price multiple Forecasted growth rate $2.34 8.50% $ 19.30 Share price Earnings Cash Flow $5.00 13.10 13.63% $6.30 9.57 11.26% Sales $ 25.65 2.51 7.24% The sustainable growth rate is 4.522 percent, and the required return is 10.75 percent. Use the clean surplus relationship to calculate the share price for Beagle Beauties with the residual income model. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
There is a probability of 0.53 that there will be extremely cold weather this coming Winter. If it does, we expect investors of Star & Bucks to achieve a return of 0.15. Else, investors may expect a lower return of 0.07. Can you estimate the variance of this rate of return? (In Excel with Formulas) Please answer fast i give you upvote.
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of .52 that consumers will love Happy Forever, and in this case, annual sales will be 1.02 million bottles; a probability of .37 that consumers will find the smell acceptable and annual sales will be 228,000 bottles; and a probability of .11 that consumers will find the smell unpleasant and annual sales will be only 50,000 bottles. The selling price is $36, and the variable cost is $11 per bottle. Fixed production costs will be $1.08 million per year, and depreciation will be $1.15 million. Assume that the marginal rate tax is 27 percent. What are the expected annual incremental after-tax free cash flows from the new fragrance?
Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2021. Also assume that the firm's equity beta is 1.20, the risk-free rate is 2.65 percent, and the market risk premium is 7.0 percent. Dividends per share Return on equity Book value per share 2021 value per share Average price multiple Forecasted growth rate $ 2.26 9.50% $ 18.70 Earnings $ 5.00 Cash Flow Sales $ 6.30 $ 25.65 13.10 9.53 2.47 13.59% 11.30% 7.23% Using the PE, P/CF, and P/S ratios, estimate the 2022 share price for Beagle Beauties. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Using PE ratio Using P/CF ratio Using P/S ratio Share Price

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