Solution-Calculate the expected return of corporate bond

Calculate the expected return of corporate bond

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Reference no: EM133003242

QUESTION -

A) Explain the difference between the assumption of Net Fixed Assets as a function of Sales and the assumption of Fixed Assets at Costs as a function of Sales.

B) You are a financial manager of a firm with its core business in utilities and the non-core division in media. Your firm plans to invest in a series of new projects in online video streaming. you have calculated the weighted average cost of capital (WACC) of the whole firm and plan to use it as the discount rate to evaluate these new projects, Discuss whether the discount rate (WACC of the firm) is appropriate for evaluating the projects and the consequences of doing that.

C) Can Capital Asset Pricing Model be used to calculate the expected return of corporate bond? Explain.

D) Discuss this comment,' A valuation is an objective search for true value'.

Reference no: EM133003242

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Calculate the expected return of corporate bond

Reference no: EM133003242

Reference no: EM133003242

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