Polycorp existing assets

Assignment Help Basic Statistics
Reference no: EM131660757

1. Polycorp's existing assets (projects) have a average beta of 1.2. The market risk premium is 5% and the risk free rate is 3%. What is the risk adjusted rate of return RADR required for these assets (the cost of capital of the existing assets)? provide your answer as a percentage but do not enter the % sign. An answer of 10.456% should be entered as 10.46.

2. The annual nominal rate is jm = 0.13pa. What is the effective annual rate as a percentage to two decimal places? The number of compounding periods is 8. Enter your answer as a decimal eg 17.42% = .1742 to four decimal places. Accuracy of one basis point. Tip: use excel to get the required accuracy.

3. Polycorp is considering a new project. The project has beta (β) that is twice that of the firm's existing assets (projects). Polycorp's existing assets have a required return (cost of capital) of 10%, the market risk premium is 5% and the risk free rate is 4%. Calculate the beta for the new project. Provide your answer accurate to two decimal places.

Reference no: EM131660757

Questions Cloud

What is the appropriate amount for harry putts : What is the appropriate amount for Harry Putts to report for these investments on the December 31, 2014, balance sheet
Discuss all the voting techniques : Voting Techniques. Algonquin Corp. has issued and has outstanding 100,000 shares of common stock. Four stockholders own 60,000 of these shares.
What impact does depreciation expense : What impact does depreciation expense from year one have on cash flow during year one? Give example(s).
Describe quality planning and the quality management plan : Describe quality planning and the quality management plan.
Polycorp existing assets : 1. Polycorp's existing assets (projects) have a average beta of 1.2. The market risk premium is 5% and the risk free rate is 3%.
Assess current legal and ethical principles : Assess current legal and ethical principles and the application of such principles in healthcare practice.
What is your opinion on the current use of vaccinations : What is your opinion on the current use of vaccinations. How would you educate parents regarding the safety and effectiveness of vaccinations
How much is uncollectible-account expense : Uncollectible accounts are determined by the percent-of-sales method to be 4% of credit sales. How much is uncollectible-account expense for 2014
Time value of money calculations template : Resources: Microsoft® Office® 2013 Accessibility Tutorials, Microsoft® Excel®, Time Value of Money Calculations Template

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

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!

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