User Account

All Pages

Create a portfolio as risky as the market

Assignment Help Finance Basics
Reference no: EM13297890

Question 10
You want to create a portfolio as risky as the market. Suppose you invest your money in Stocks A, B, C, and the risk-free asset. What is the weight of Stock C in your portfolio?

Stock Weights(%) Beta

A 27 1.2

B 16 0.3

C ? 1.5

Rf ? ?

Question 18
A firm has a return on equity of 14.6 percent, a net profit margin of 8.4 percent, and total equity of $553.9. What is the net income?
.

Question 19
ABC Company has a debt-equity ratio of 0.77. What is the debt ratio?

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 20
ABC, Inc. has 6 percent bonds outstanding that mature in 20 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $814 each. What is the firm's after-tax cost of debt if the tax rate is 21%?

Enter your answer as a percentage rounded off to two decimal points.

Reference no: EM13297890

Questions Cloud

Explain how would the isomerization be followed : In the lab using conc. HCL and heat, if the solubities of reactant and product were reversed , how would the isomerization be followed. How would one knows when it is complete
Draw the current density as a function of graph : The current density from the axis in the wire of radius R is given by J = cr^0.5 (r is powered to one-half), Draw the current density as a function of r graph
Explain what is public administration : Explain what is Public Administration? Also, is it the same as Public Sector Management? List all references in Chicago Manual Style 16th edition.
What is their common speed afterward : A 1443 kg railroad car traveling at a speed of 10m/s strikes an identical car at rest. what is their common speed afterward
Create a portfolio as risky as the market : You want to create a portfolio as risky as the market. Suppose you invest your money in Stocks A, B, C, and the risk-free asset. What is the weight of Stock C in your portfolio?
Compute value of the equilibrium constant for the reaction : A+2B 2C Kc=2.93 2C D Kc=0.288 calculate the value of the equilibrium constant for the reaction. D A+2B
Estimate the diameter of her pupil : An eagle can determine that two light brown shrews sitting 1.0 cm apart on a pathway 125 m below her are in fact two shrews rather than a small rat. estimate the diameter of her pupil
Percentage changes in the values of the two portfolios : What are the percentage changes in the values of the two portfolios for a 5% per annum increase in yields?
Indicate values for optimum water content and max density : Compacted one cylinder of the soil describes above problem 1 to compare the new results with shown above. The data obtained included a water content of 32.5% and a total density of 121.9 pcf. Comment on these new findings.

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the payments

The last payment is in 5 years. If the APR on the loan is 8%(semi-annual compounding), what are the payments?

  What is abbott cash conversion cycle

Abbot Corporation has an average collection period of 49 days, an inventory conversion period of 83 days, and a payables deferrable period of 36 days. What is Abbott's cash conversion cycle?

  Is there a gain or a loss

If you have chosen corn as a commodity how would you find the change in value that has taken place on a long position over the last 5 days of trading, is there a gain or a loss, and would there be a margin call?

  Find the probability that the machine will be profitable

Find the probability that the machine will be profitable (that is its NPV > 0). Should the hospital buy the machine?

  What gain must sierra recognize in 2014

Jack sold the land for $325,000 cash. As a result of the second disposition, what gain must Sierra recognize in 2014?

  What will her annual benefit be

At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000. What will her annual benefit be?

  High tech firm acquisition

Your firm is interested in acquiring a high tech firm to expand its business. It is considering making the acquisition usingcash, stock, or a combination of both.

  What would the firms total market value be

The CFO believes that a move from zero debt to 55.0% debt would cause the cost of equity to increase from 10.0% to 13.0%, and the interest rate on the new debt would be 8.0%. What would the firm's total market value be if it makes this change?

  Calculate the location of the break point

Adjust the component costs of capital for taxes and flotation costs, and calculate the WACC before and after the first break.

  What is the weight of the preferred stock

What is the weight of the preferred stock as it relates to the firm's weighted average cost of capital?

  Computing accumulated amount of deposit

Assume you deposited $3000 in the savings account with the annual rate of interest of 2% compounded continuously.

  What is the value of the equity of m corporation

what is the value of M Corporation's capital? If M Corporation has long-term debt of $2 million, what is the value of the equity of M Corporation?

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd