Reference no: EM131088047
An investment project provides cash inflows of 200, 400, 670, 890, 1130, 1040, 880, 740, 530, 200, 110, 30 each year starting in year 1. What is the project payback period if the initial cost is $5,600? this must done in excel.
Securities or creating distinctive two-factor portfolios
: Jane is considering investing in three different securities or creating three distinctive two-factor portfolios. Determine, using the appropriate Excel function the covariances between securities A&B; B&C; A&C. Determine the betas Security A, a utili..
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What is its self-supporting growth rate
: Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,100,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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Cash flows for three mutually exclusive projects
: Consider the following cash flows for three mutually exclusive projects. What is the IRR of the project you should accept? Assume an interest rate of 12% Year A B C 0 −$950,000 −$1,790,000 -$1,000,000 1 370,000 800,000 660,000 2 510,000 800,000 550,0..
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What is the project payback period if the initial cost
: An investment project provides cash inflows of 200, 400, 670, 890, 1130, 1040, 880, 740, 530, 200, 110, 30 each year starting in year 1. What is the project payback period if the initial cost is $5,600? this must done in excel.
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Risk-free rate have to for two stocks to be correctly priced
: Stock Y has a beta of 1.2 and an expected return of 15.3 percent. Stock Z has a beta of 0.8 and an expected return of 10.7 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?
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Decision contradict the normal backwardation theory
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: You own a stock portfolio invested 24 percent in Stock Q, 21 percent in Stock R, 44 percent in Stock S, and 11 percent in Stock T. The betas for these four stocks are .86, .92, 1.32, and 1.77, respectively. What is the portfolio beta?
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What is the effect on the stock price of an announcement
: An unlevered firm has a market value of $10 million, with $1 million of its assets incash. With 500,000 shares outstanding, its current stock price is $20. Find the new stock price after the ex-dividend date. Under the assumptions of Modigliani-Mille..
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