### What is the company''s required return

Assignment Help Finance Basics
##### Reference no: EM131019369

1) Financial analysts have developed two performance measures: Market Value Added (MVA) and Economic Value Added (EVA). Discuss and explain both. Which is a better representative of the firm's performance, and why?

2) The Kitter Corporation, and tech firm, has a beta of 3.75. If the market return is expected to be 20 percent and the risk-free rate is 9.5 percent, what is the company's required return?

3) At age 25 you invest \$2,000 that earns 6 percent each year. At age 35 you invest \$2,000 that earns 9 percent per year. In which case would you have more money at age 60?

4) Your company has spent \$1,000,000 on research to develop a new computer game. The firm is planning to spend \$500,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total \$75,000. The machine has an expected life of 3 years, a \$100,000 estimated resale value, and falls under the MACRS 5-Year class life. Revenue from the new game is expected to be \$2,000,000 per year, with costs of \$800,000 per year. The firm has a tax rate of 35 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by \$300,000 at the beginning of the project. What will be the net cash flow for year one of this project?

#### What is the appropriate discount rate for this project

What is the appropriate discount rate for this project -A colleague argues that the project should not be taken because it is risky and the firm can't afford to take risks in

#### Why do some people consider insurance

How has the Community Development Block Grant served to help communities perform local mitigation?- Why do some people consider insurance to not be a proper mitigation method?

#### Number of permutations of five things

A. If P(A) = .05, then the odds against event A's occurrence are 19 to 1. B. If A and B are mutually exclusive events, then P(A or B) = 0. C. The number of permutations of fiv

#### Hypothesis test for a population proportion

Suppose are running a study/poll about the probability of a true negative on a test for a certain cancer. You randomly sample 140 people and find that 70 of them match the c

#### Yield for the whole process

A Six Sigma process step is expected to be successful 99.99966% of the time. Hypothetically, if a process had 150,000 steps and each and every step was at exactly a Six Sigm

#### What amount of interest would scott pay for each option

What total amount of interest would Scott pay for each option? Describe the advantages and disadvantages of each financing option. If you were Scott, which of these three f

#### What was swan depreciation and amortization expense

Swan's Bicycle Boats had a degree of accounting operating leverage equal to 1.50 during the most recent period. If the firm's EBITDA was \$5,000 and its fixed costs were equa

#### Complete a financial analysis of longs jewelers

Complete a financial analysis of Longs Jewelers including a cash flow statement and ratio analysis and discuss your findings. Identify critical non-quantitative issues that sh