Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You have run a regression of returns of lulus, against the S&P 500 Index using monthly returns over the last 5 years and arrived at the following regression: R lulus = -.20%+1.5R S&P500. If the stock had a Jensen’s alpha of +0.10% (on a monthly basis) over this period.
1. Estimate the monthly riskfree rate during the last 5 years.
2. What is the annualized risk free rate?
3. What is the monthly risk free rate if the Jensen’s alpha had been 2.4% on an annualized basis?
The Bowman Corporation has a bond obligation of $26 million outstanding, which it is considering refunding. Though the bonds were initially issued at 11 percent, the interest rates on similar issues have declined to 9.9 percent. Calculate the present..
Discuss how the revenue stream may be made up if the revenues from property taxes have to be decreased. Do you think the government will increase the tax percentage or increase taxes in another area in order to compensate?
Martin Industries just paid an annual dividend of $2.30 a share. The market price of the stock is $28.90 and the growth rate is 5.8 percent. What is the firm's cost of equity?
Could I Industries just paid a dividend of $1.92 per share. The dividends are expected to grow at a 19 percent rate for the next 3 years and then level off to a 6 percent growth rate indefinitely. If the required return is 11 percent, what is the val..
At time =0 an engineer deposited $10000 into an account that pays interest at 8% per year,, compounded semi annually. If she withdrew $1000 in months 2,11, and 23, what was the total value of the account at the end of 3 years? Assume NO inter period ..
Micro Spinoffs, Inc., issued 10-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the debt is selling at $1,160. The firm’s tax bracket is 35%. Micro Spinoffs also has preferred stock outstanding. The stock pays a divi..
Merrill Lynch Limited has the following information and a tax rate of 30 percent. . Debt 2,000, 6 percent coupon bonds outstanding, $1,000 par value, 12 years to maturity, selling for 95 percent of par, the bonds make semiannual payments Common stock..
Negus Enterprises has an inventory conversion period of 70 days, an average collection period of 42 days, and a payables deferral period of 33 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. What i..
A basketball player has just signed a $30 million contract to play for three years. She will receive $5 million as an immediate cash bonus, $5 million at the end of the first year, $8 million at the end of the second year, and the remaining $12 milli..
JJ Industries will pay a regular dividend of $2.50 per share for each of the next four years. At the end of the four years, the company will also pay out a $61 per share liquidating dividend, and the company will cease operations. If the discount rat..
An major difference between New York stock exchange and NASDAQ market is. An investment whose characteristic line has a slope greater than 1 is known as. The most common base rate of interest in the U.S is_______?
What is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million, if the average interest rate on debt is 8.5% and the marginal tax rate is 35%?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd