Ms. B has $1000 to invest. She is considering investing in the common stock of company M. In addition, Ms. B will either borrow or lend at the risk-free rate. Ms. B decide to invest $350 in common stock of company M and $650 placed in the risk- free asset. The relevant parameters are 1) What is the expected return? 2) What is the variance of the portfolio? 3) What is the standard deviation of the portfolio?

Ms. B has $1000 to invest. She is considering investing in the common stock of company M. In addition, Ms. B will either borrow or lend at the risk-free rate. Ms. B decide to invest $350 in common stock of company M and $650 placed in the risk- free asset. The relevant parameters are 1) What is the expected return? 2) What is the variance of the portfolio? 3) What is the standard deviation of the portfolio?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter10: Valuing Early-stage Ventures

Section: Chapter Questions

Problem 2cM

See similar textbooks

Similar questions

4 t of estion Determine the market value of a Digicel Stock if Do = 3.00, Ks = 13%, G = 6%. Select one: O a. O b. O c. O d. $45.43 $30.29 $53.00 $3.18
What is XYZ's estimated cost of common equity using the CAPM approach? Beta 1.2 rRF 7% RPm 6% Estimated cost of Common Equity ?
Q35 Net proceeds of an issue of equity share would be equal to a. face value of a share plus flotation cost b. face value of a share minus discount c. face value of a share minus issue price of a share d. issue price of share minus flotation cost
D1 = $0.8, rs = 10.5%, g = 6%. Calculate stock price. $18.17 $17.45 $18.04 $17.78
Question 26 Consider the following data: D1-$1.55: Po-$49.50. g-3.70% (constant), and F-2.00%. What is the cost of equity raised by selling new common vock? O a. 9.90% Ob.6.90% O c. 10.90% O d. 8.90% O e. 8.83%
atab=r1&sl=en&tl%3Dar&text%3DThe%20company's%20 = Google Translate The company's capital structure is as follows: Debt Weight 25%, Preferred Stock Weight 25%, Common equity Weight 50%. The cost of debt is 12%, the cost of preferred stock is 15% and the cost of common equity is 0.191. Calculate the company's weighted average cost of capital. Select one: a. 0.0655 b. 0.1255 C. All the given choices are not correct d. 0.1630 e. 0.1330 Clear my choice haykal almakha aldiyn 12 Type here to search Esc F1 F2 F3 F4 F5 F6 F7 F8 @ #3 24 * 2 T 3.
ppose a stick had an price 115 per share paid div of 3 ending price of 144 pecentsge totsl return
Please use excel formulas Current dividend Years until dividend ceases Required return (Use cells A6 to B8 from the given information to complete this question.) Output area: Share price $9.45 13 10.70% ?
D0 = $1.75, g = 3.6%, P0 = $32, find the stock return 9.27% 9.59% 9.18% 9.13%
P Flag question The company capital structure consists of debt 250000 at 0.082, preferred stock 230000 at 11% and common stock 120000 at 14%, calculate company's weighted average cost of capital Select one: O a. 0.0341 Ob. All the given choices are not correct Oc. 0.1042 Od. 0.0621 O e. 0.0762
tol Processing ng Help Save & Exit Submit Saved Practice Problems i Check my work Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend valuation model to compute the cost of common equity (also referred to as the required rate of return for common equity). Assume: Rf = 7% Km 10% = 1.6 D1 = $ 0.70 $ 19 8% %3D PO = nt a. Compute Ki (required rate of return on common equity based on the capital asset pricing model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) ences Ki b. Compute Ke (required rate of return on common equity based on the dividend valuation model). (Do not round intermediate calculations, Input vour answer as a percent rounded to 2 decimal places.) < Prev 10 of 10 Next Mc Graw Hill 149 MacBook Air
DeLong Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year: Jan. 10 Issued 80,000 shares of common stock for cash at $4 per share. 1 Issued 5,000 shares of preferred stock for cash at $105 per share. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land was $85,000. Mar. Apг. 1 Issued 80,000 shares of common stock for cash at $4.50 per share. Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services performed in helping the company organize. May Sept. 1 Issued 10,000 shares of common stock for cash at $5 per share. Nov. 1 Issued 1,000 shares of preferred stock for cash at $109 per share.