Consider the following covariances between securities:     Duke Microsoft Wal-Mart Duke 0.0568 -0.0193 0.0037 Microsoft -0.0193 0.2420 0.1277 Wal-Mart 0.0037 0.1277 0.1413 What is the variance on a portfolio that is made up of $6000 investments in Microsoft and a $4000 investment in Wal-Mart stock?

Q: Operating profit margin = 8.65% Sales to assets ratio = 3.20 Assets = 630,000 Equity = 430,000…

A: Return on equity (ROE) : It is calculated as Net Income divided by Shareholders' equity. It is…

Q: For a project that has a net investment of $1,500,000 and net cash flows of $400,000 for 5 years; Is…

A: We need to IRR function in excel to calculate Internal Rate of Return(IRR) Formula is…

Q: Based on the information in the yellow shaded areas: a) Plot the Security Market Line (SML)  b)…

A: We need to plot the SML and then CAPM required return for each stock. We need to find which of them…

Q: 16) A firm has common stock with a market price of $55 per share and an expected dividend of $2.81…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: A stock had returns of 10% 3% and -6% over the past 3 years. What is the mean of the stock return…

A: Mean of the returns is the average calculated using the below formula.  Standard deviation formula…

Q: You have recently been hired to improve the performance of Multiplex Corporation, which has been…

A: Formula =  Cash conversation cycle  = days saies outstanding + days inventory outstanding - days…

Q: I need help with plotting the said graph. What program was used to do the above or can a different…

A: Security Market Line (SML) is the relationship between expected return and beta.

Q: oel is considering putting a $4500 laptop purchase on his credit card, which has an interest rate of…

A: Compounded monthly  The interest earned over the interest already earned is known as compounded…

Q: Given the following information: Interest rate 9% Tax rate 30% Dividend $2.50 Common stock on the…

A: A company's average after-tax cost of capital from all sources, including common stock, preferred…

Q: Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by table lookup. (Use…

A: Here, Particulars Values Purchase price of a used car  $ 4,455.00 Down payment  $ 90.00…

Q: Your portfolio has 20% invested in stock A and 80% invested in stock B. Stock A has an expected…

A: Weight of stock A = 0.2 or 20% Weight of stock B = 0.8 or 80% Volatility of stock A = 15% Volatility…

Q: .Firms prefer to acquire existing assets rather than undertake greenfield investments while…

A: A statement has been made. We have to provide reasons to support the statement.

Q: From the following facts, Molly Roe has requested you to calculate the average daily balance. The…

A: The average daily balance is the estimation of the amount on which the interest has been calculated…

Q: debt coverage ratio? b. What is the terminal capitalization rate

A: The debt-service coverage ratio is a frequently used measure of a company's financial health,…

Q: What are the pros and cons to investing on a international level? How would one diversify their…

A: Investing in international market generally done with a motive of maximising the rate of return…

Q: uppose company A is 100% equity and goes through a leverage recapitalisation operation, i.e., it…

A: Perfect capital markets Perfect capital markets fulfill certain following assumptions. There are no…

Q: 1. What is the unadjusted book receipts in December? 2. What is the unadjusted book disbursements…

A: computation of the unadjusted book receipts in December:   Particulars Amount Cash receipts…

Q: ABC Company Limited looking to invest in one of the proposed projects. The cost of that project is…

A: First we need to calculate NPV of project by using both interest rates. NPV =PV of all cash inflows…

Q: An Engineering Company is considering investing in a project. The estimated investment cost for this…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: 23. Boricua stock is currently trading at a market price (S) of $95. have an options strategy in…

A: Profit to a long position in put option Profit to a long position in put option is calculated as…

Q: 5. The relationship between a firm's capital structure and other company attributes As a firm takes…

A: The entity that utilizes merely equity for raising the capital indicates an unlevered firm. However,…

Q: Suppose you are a manager for a certain company. You earn $50,000 per year and are in the 28%…

A: A drop in the level of tax paid by a citizen, corporation, or other taxpayer is alluded to as a tax…

Q: Problem 13-5 Calculating Expected Return [LO1] Consider the following information: State of Economy…

A: Expected returns can be calculated by multiplying their respective probabilities with their…

Q: discuss the advantages and disadvantages of using return on capital employed ?

A: We have to find the advantages and disadvantages of using return on capital employed (ROCE).

Q: The Summit Petroleum Corporation will purchase an asset that qualifies for three-year MACRS…

A: Net Present Value (NPV) of a project is determined to understand the cost and benefit of the…

Q: Items 21 to 27 are based on the following information: The balance sheet for the Litex Corporation…

A: Given Notes Receivable = P365,000 Accounts Receivable = P856,000 Interest Receivable = P5,250 Notes…

Q: Herman Co. is considering a four-year project that will require an initial investment of $12,000.…

A: We have the quantum and timing of cash flows emanating from a project. We have to find the expected…

Q: Beaufort Ltd is a leading national manufacturer of sports apparel for GAA and soccer clubs. The…

A: To find out the cost of equity, first we need to compute the growth rate in dividend payment so that…

Q: Property worth ​$185,000.00 can be purchased for 5​% down and mortgage payments of​$3500.00 at the…

A: Relation between effective annual rate and the annual nominal rate Effective annual rate is one that…

Q: (a) Show what would happen if this plan were implemented. (b) Calculate the costs associated with…

A: Given data is Labor cost per hour for regular time $25 Labor cost per hour for overtime = $37.50…

Q: nd re-investment plan’, and how it benefits the com

A: Company is owned by the shareholders and it is necessary for the company to share profit with…

Q: Ramon Hernandez saw the following advertisement for a used Volkswagen Bug and decided to work out…

A: Here, Particulars Values Cash price  $   7,850.00 Down payment  $             -   Amount…

Q: Stellar Aeronautics, Inc. is trading at a trailing PE of 13.6. Analysts forecast Stellar’s dividends…

A: Stock valuation The process involves valuing the company and comparing the current value of the…

Q: You have debt payments of $500 due three months ago, $1,000 due today, and $2,000 due in fifteen…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: he NOI for a small income property is expected to be $150,300 for the first year. Financing will be…

A: GIven NOI is $150300 DCR is 1.2

Q: Cheese & Cake Factory is looking at a project with the following forecasted sales: first-year sales…

A: The depreciation rates of 7-year equipment as per MACRS table are 10.71% for year 1, 25.51% for year…

Q: A friend lends you $830, which you agree to repay with 5% interest. How much will you have to…

A: Given The amount borrowed is $830 Interest rate is 5%

Q: Adamson Corporation is considering four average-risk projects with the following costs and rates of…

A: Different sources of capital are available. We have to find the component cost and then WACC.…

Q: Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of…

A: The median balances between Chase checking and savings accounts are used to establish the actual…

Q: Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date…

A: Bond Bonds are a source of financing for businesses. It is a type of financial instrument that…

Q: Assume that you make monthly payments of $400 into an ordinary annuity payi f 5% compounded monthly.…

A: Value of account after 8 years is calculated as future value using following equation Future value =…

Q: Project X has an initial investment at time O of $1,000 and it returns $250 one year from now and…

A: We have the quantum and timing of cash flows emanating from Project X and Y. We have to find its…

Q: A 1,000 par value 34-year bond with 9% annual coupons is bought at a price to yield an annual…

A: Data given: Par value=1000 n=34 years Coupon=9% i=Effective rate=4%   Required: Interest portion of…

Q: WHAT IS A SMART CONTRACT? HOW CAN IT BE USED IN FINANCE?

A: Block technlogy is growing very much now days and it is used in finance quite much and this based on…

Q: Ted owns a Lexus worth $44,100. He owns a home worth $275,000. He has a checking account with $740…

A: Ted's total assets comprising of his car, home, bank balances, investments and personal assets is…

Q: ermin e the exact sin interest

A: Unlike compound interest simple interest is always calculated on the original amount which is known…

Q: Examples or violations Real Estate Investment Trust Act of 2009 (RA 9856)

A: Businesses that manage, own, or fund income-producing real estate assets are considered REITs (Real…

Q: Vilas Company is considering a capital investment of $198,900 in additional productive facilities.…

A: For a typical capital budgeting project, we have to find the cash payback period, annual rate of…

Q: QUESTION 7 Massey Enterprises is planning to buy a new machine to decrease the overall cost of…

A: concept. Net Present Value . It is capital budgeting technique used for making investment decisions.…

Q: You want to receive ​$275 at the end of every three months for 5 years. Interest is 5.7% compounded…

A: Present value refers to the current value of an asset present at some future date. It is helpful…