You are considering an asset allocation that will consist of 10 percent in the money market account, 40 percent in the Small-Stock Fund, which has a beta of 1.40 and 60 percent in the S&P/TSX index fund, which has a beta of 1.0. What is the beta of your portfolio?

Please show any calculations.

Estimate of the stocks current price : A company currently pays a dividend of $3.5 per share (D0 = $3.5). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2 years, then at a constant rate of 8% thereafter. The company's stock has a beta of 2, th.. |

Using equivalent uniform annual worth : A machine, with a first cost of $20,000, is expected to save $1,500 in the first year of operation and the savings should increase by $200 every year until (and including) the ninth year, thereafter the savings will decrease by $150 until (and includ.. |

Cost of trade credit-retailer effective cost of trade credit : Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 3/10, net 40, but routinely takes 50 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) Wha.. |

What is your estimate of the current share price : Industrial Lights is expected to have $20 millions in free cash flows next year. The growth rate of free cash flows is expected to be 14% in the following year, 12% in the year after that, and continue declining by 2% until it reaches 6%, where it is.. |

Considering an asset allocation-what is beta of portfolio : You are considering an asset allocation that will consist of 10 percent in the money market account, 40 percent in the Small-Stock Fund, which has a beta of 1.40 and 60 percent in the S&P/TSX index fund, which has a beta of 1.0. What is the beta of y.. |

What is the equivalent uniform annual cost of the implement : Lucas Construction just purchased a new track hoe attachment costing $12,500. The CFO, Mr. Cameron Lucas, expects the implement will be used for five years when it is estimated to have a salvage value of $4,000. Maintenance costs are estimated to be .. |

Collision and other-than-collision insurance with deductible : Sam has auto liability insurance with limits of 25/50/25. He also has collision and other-than-collision insurance with a deductible of $500 on his 2010 minivan, valued at $22,500. Dick had medical bills of $12,345. Harry had medical bills of $4,970... |

Comprehensive and collision insurance : Alan owns a 2011 BMW, which he paid $44,000 for. He has comprehensive and collision insurance on the car with a $500 deductible. This year, Alan has had a series of unfortunate incidents. Then some darn teenager spray painted a "piece" sign on the tr.. |

Differentiation strategy or focus-cost leadership strategy : Give one example of a service firm that either uses a focus/differentiation strategy or a focus/cost leadership strategy. Briefly describe the market segment served by the firm. Rate the complexity and rate the divergence of the firm’s service operat.. |

## Experiencing rapid grow-dividends are expected to growMomsen Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 9 percent per year indefinitely. The required return on this stock is 11 percen.. |

## What is the expected return on a bond if the returnWhat is the expected return on a bond if the return is 9% two-thirds of the time and 3% one-third of the time? What is the standard deviation of the returns on this bond? Would you prefer this bond or one with an identical expected return and a stand.. |

## Advertising an extravagant global vacationYour local travel agent is advertising an extravagant global vacation. The package deal requires that you pay $5,000 today, $15,000 one year from today, and a final payment of $25,000 on the day you leave two years from today. What is the cost of thi.. |

## New storage facility-fulfil all of the loan paymentsOrange Spark, Inc. just purchased a new storage facility. The company will begin making loan payments of $15513 at the end of year 5. Orange Spark will make a payment at the end of each year for 11 years. How much should Orange Spark deposit today, i.. |

## Individual or component costs of capitalIndividual or component costs of capital) compute the cost of capital for the firm for the following: A bond that has a $1,000 par value (Face value) and a contract or coupon interest rate of 10.3 percent. Interest payments are $51.50 and are paid se.. |

## George misconception about satishDid Preet make a mistake by not intervening during the meeting and correct George's misconception about Satish? As an HR man, how would you define the character of George - bullying but later regretting? Does his attitude need to be corrected? Would.. |

## The firms depreciation expenseBrandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75% of revenues, and depreciation expense was $1.5 million. What were Brandywine's net income, total profit margin, and cash.. |

## What must the beta of this stock beA stock has an expected return of 14.6 percent, the risk-free rate is 5.70 percent, and the market risk premium is 7.3 percent. Required: What must the beta of this stock be? |

## What is your best estimate of the aftertax cost of debtJiminy’s Cricket Farm issued a 20-year, 6 percent semiannual bond 2 years ago. The bond currently sells for 92 percent of its face value. The company’s tax rate is 40 percent. What is the company’s total book value of debt? What is your best estimate.. |

## What is the expected gain from acquisitionDublin Medical (DM), a large established corporation with no growth in its real earnings, is considering acquiring 100% of the shares of Arlington Corporation, a young firm with a high growth rate of earnings. What is the expected gain from acquisiti.. |

## Historical cost information instead of market valuesWhy does the balance sheet report historical cost information instead of market values for assets? Please explain |

## The price of the stock go before you get a margin callYou are bearish on AT&T stocks and decide to sell short 100 shares at the current market price of $15 per share. The initial margin requirement is 50% and the maintenance margin requirement is 30%. How high can the price of the stock go before you ge.. |

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