# Following are rates of return on medical equip. company's stock and debt, and on the market portfolio, along with the probability of each state. State Prob. Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8

18,789 results
1. ## Finance (Check Answer plz)

Following are rates of return on medical equip. company's stock and debt, and on the market portfolio, along with the probability of each state. State Prob. Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 What is
2. ## finance (Check Answer plz)

Following are rates of return on medical equip. company's stock and debt, and on the market portfolio, along with the probability of each state. State Prob. Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 What is
3. ## finance (Check Answer plz)

Following are rates of return on medical equip. company's stock and debt, and on the market portfolio, along with the probability of each state. State Prob. Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 What is
4. ## finance (Check Answer plz)

Following are rates of return on medical equip. company's stock and debt, and on the market portfolio, along with the probability of each state. State Prob. Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 What is
5. ## finance (Repost)

Following are rates of return on a medical equipment company stock, debt, and market portfolio, along with probablity of each state State Prob Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 If the company's
6. ## finance

Following are rates of return on a medical equipment company stock, debt, and market portfolio, along with probablity of each state State Prob Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 If the company's
7. ## finance

Following are rates of return on a medical equipment company stock, debt, and market portfolio, along with probablity of each state State Prob Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 If the company's
8. ## Finance

Following are rates of return on a medical equipment company stock, debt, and market portfolio, along with probablity of each state State Prob Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 If the company's
9. ## finance

Following are rates of return on a medical equipment company stock, debt, and market portfolio, along with probablity of each state State Prob Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 If the company's
10. ## Finance

Following are rates of return on a medical equipment company stock, debt, and market portfolio, along with probablity of each state State Prob Ret.on Stock Ret.on Debt Ret.on Market 1 .1 3 8 5 2 .3 8 8 10 3 .4 20 10 15 4 .2 15 10 20 If the company's
11. ## Finance

You are provided the following information on a company. The total market value is \$40 million. The capital structure, shown here, is considered to be optimal. Accounting Value Market Value Bonds, \$1000 par, 6% coupon, 6% YTM \$10,000,000 \$10,000,000

Based on this financial info where a company's Beta Year = 2008, the Company's commons stock = 0.85, the Risk-Free Rate of Return = 5%, and the Market Risk Premium = 6%. Use the dividend growth model to calculate the Company's Common Stock in 2008. Stock 1
13. ## math problem

Real Versus Nominal Returns. A foreign stock market provided a rate of return of 95 percent. The inflation rate in this country during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 percent, but the
14. ## Financing

Define the following terms and identify their role in financing A. Finance B. Efficient Market C. Primary Market D. Secondary Market E. Risk F. Security G. Stock H. Bond I. Capital J. Debt K. Yield L. Rate of Return M. Return of Investment N. Cash Flow
15. ## finance

Define the following terms and identify their role in finance: 1. Finance 2. Efficient Market 3. Primary Market 4. Secondary Market 5. Risk 6. Security 7. Stock 8. Bond 9. Capital 10. Debt 11. Yield 12. Rate of Return 13. Return on Investment 14. Cash Flow
16. ## Finance ( Need help )

Sapp Trucking’s balance sheet shows a total of noncallable \$45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of \$50 million. The balance sheet also shows that the company has
17. ## Finance

One of Wildcat's competitors has a total assets turnover equal to 2.0, a return on equity equal to 15%, and a debt ratio equal to 60%. The company is financed with debt and common stock. What is this company's Return on Assets and Net Profit Margin?
18. ## Finance

Hello. I need to find the market values of debt and equity for a company. The company is fictitious, so I cannot pull up any real market data for it. I have the book value of stockholder's equity as \$36,231, and I know that the Debt to Equity Ratio is
19. ## Finance

You are considering buying 100 shares of TEXAS INC common stock. The common stock is expected to pay a dividend of \$2.50 a year from today; the growth rate of the dividends is 8% for two years, then level off to a constant rate of 5% per year. The
20. ## finance

The Nutrex Corporation wants to calculate its weighted average cost of capital. Its target capital structure weights are 40 percent long-term debt and 60 percent common equity. The before tax cost of debt is estimated to be 10 percent and the company is in
21. ## Finance questions

1) growth rates The stock price of the company is \$76 investors require a 14% rate of return on similar stocks If the company plans to pay a dividend of \$5.00 next year the expected growth rate of the company's stock price is ______ percent 2) non constant
22. ## fianancial management

Cox Wood Preserving, Inc. is expected to maintain a constant 2\$ growth rates in its dividends, indefinitely. If the company just paid \$2 dividend and the firm's stock is selling at \$15. What is the required return on the company's stock?

1) growth rates The stock price of the company is \$76 investors require a 14% rate of return on similar stocks If the company plans to pay a dividend of \$5.00 next year the expected growth rate of the company's stock price is ______ percent 2) non constant
24. ## Econ

How would you expect the return on a stock market fund to differ from the return on savings account? Why do you think the two rates of return differ?
25. ## Economics

How would you expect the return on a stock market fund to differ from the return on savings account? Why do you think the two rates of return differ?
26. ## finance

A stock has a beta of 2.0. A security analyst who specializes in studying this stock expects its return to be 24%. Suppose the risk-free rate is 6 percent and the market-risk premium is 10 percent. Is the stock overvalued or undervalued relative to the
27. ## Finance

I'm struggling with being able to solve this question: A company wants to raise money in the capital markets. The firm intends to sell \$18 million of common stock; the expected return is 15%. In addition, the company plans to issue \$5 million of debt, the

The market’s required return on Gitche Gumee Oil Company stock is currently 13.8 percent. If the expected return on the market portfolio is 12.6 percent and the risk-free rate is 3.5 percent, what is the beta of Gitche Gumee stock?
29. ## finance

The Nutrex Corporation wants to calculate its weighted average cost of capital. Its target capital structure weights are 40 percent long-term debt and 60 percent common equity. The before-tax cost of debt is estimated to be 10 percent and the company is in
30. ## Quantitative methods

Allen must decide whether to invest \$10,000 in the stock market or in a certificate of deposit (CD) at an interest rate of 9%. If the market is good , he believes that he could get a 14% return on his money. With a fair market, he expects to get an 8%
31. ## finance

AAA has only stock and bonds in its capital structure. Balance sheet information: Long term debt (par value--NOT number of bonds) = \$20,000,000, Common equity and retained earings = \$17,000,000, and Shares of stock outstanding = 1,000,000. Bond
32. ## Corporate Finance

Suppose a company will issue new 5 year debt with a face value of \$1000 and a coupon rate of 8 percent, paid annually.If the issuing price is \$1080 and the tax rate is 40 percent.what is the after-tax cost of debt?If the expected rate of return of the
33. ## Finance

The Isberg Company just paid a dividend of \$0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.25, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is the
34. ## Math

1. Bob’s Country Bunker (BCB), a chain of economically priced motels in the Midwestern United States has reviewed its current target structure of 40% debt and 60% equity. It can issue debt at a rate of 9%. The last dividend paid on its stock was \$1.25.
35. ## Finance

If our company's bank loan has a 12 interest rate, what is our effective, after-tax interest cost? Assume the tax rate = 38% If our preferred stock is paying a contractual \$1.85 annual dividend and has current market price of \$13.50, what is our cost of
36. ## finance

If our company's bank loan has a 12 interest rate, what is our effective, after-tax interest cost? Assume the tax rate = 38% If our preferred stock is paying a contractual \$1.85 annual dividend and has current market price of \$13.50, what is our cost of
37. ## Financial Management (Math)

1. Bob’s Country Bunker (BCB), a chain of economically priced motels in the Midwestern United States has reviewed its current target structure of 40% debt and 60% equity. It can issue debt at a rate of 9%. The last dividend paid on its stock was \$1.25.
38. ## Fiancne

Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings, and rents the property to tenants. The company has shown a profit every year for the past 18
39. ## Math

Real Versus Nominal Returns. The Costaguanan stock market provided a rate of return of 95 percent. The inflation rate in Costaguana during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 percent, but the
40. ## Math

Real Versus Nominal Returns. The Costaguanan stock market provided a rate of return of 95 percent. The inflation rate in Costaguana during the year was 80 percent. In the United States, in contrast, the stock market return was only 12 percent, but the
41. ## math (pre-calc)

Analyzing a Stock. The beta, B of a stock represents the relative risk of a stock compared with a market basket of stocks, such as Standard and poor's 500 Index of stocks. Beta is computed by finding the slope of the line of best fit between the rate of

Southern Alliance Company needs to raise \$25 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent
43. ## Finance

Hooks Athletics, Inc., has outstanding a preferred stock with a par value of \$30 that pays a dividend of \$2.50. The preferred stock is redeemable at the option of the stockholder in 10 years at a price equal to \$30. The stock may be called for redemption
44. ## Financial Management

What does calculating the weighed average cost of capitol tell you about Foust Company's financial strategy including the level of risk involved in the business? How could the company use WACC calculations in determining future investments? You did not
45. ## Finance

Currently the risk-free rate equals 5% and the expected return on the market portfolio equals 11%. An investment analyst provides you with the following information: Stock beta Expected return A 1.33 12% B 0.7 10% C 1.5 14% D 0.66 9% Required: 1. Indicate
46. ## Finance

I need help with this problem: 1. Hanster Inc. is a levered firm with publicly traded shares. The company has 250 million shares outstanding with a share price of \$16 and an estimated equity beta of 1.50. The company has market value based outstanding debt
47. ## Finance

Hooks Athletics, Inc., has outstanding a preferred stock with a par value of \$30 that pays a dividend of \$2.50. The preferred stock is redeemable at the option of the stockholder in 10 years at a price equal to \$30. The stock may be called for redemption
48. ## Financial Management

Reading Foods is interested in calculating its weighted average cost of capital (WACC). The company’s CFO has collected the following information: • The target capital structure consists of 40 percent debt and 60 percent common stock. • The company

Reading Foods is interested in calculating its weighted average cost of capital (WACC). The company’s CFO has collected the following information: • The target capital structure consists of 40 percent debt and 60 percent common stock. • The company
50. ## Math

Stock Market History a. What was the average rate of return on large U.S. common stocks from 1900 to 2001? b. What was the average risk premium on large stocks? C. What was the standard deviation of returns on the market portfolio? a. Which index?
51. ## Math (Accounting)

Reading Foods is interested in calculating its weighted average cost of capital (WACC). The company’s CFO has collected the following information: • The target capital structure consists of 40 percent debt and 60 percent common stock. • The company
52. ## Managerial Finance

Assume that investors have recently become more risk averse, so the market risk premium has increased. Also, assume that the risk-free rate and expected inflation have not changed. Which of the following is most likely to occur? A. The required rate of
53. ## Finance

10. The following balance sheet extract relates to the ABC Company. Bonds Payable \$1,600,000 Common Stock \$5,000,000 Preferred Shares \$2,550,000 Additional Information: i. The bonds are 8%, annual coupon bonds, with 9 years to maturity and are currently
54. ## Finance

Suppose you know that a company’s stock currently sells for \$54 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s
55. ## General Math

I am so confused can anyone help me understand which one is correct and why.... Beta is estimated as the slope of a regression line fit to pairs of periodic returns, (rx, ry), where: rx is the return for a market index such as the S&P 500 Index. rx is the
56. ## Finance

The Frenall Company just paid a common stock dividend of \$4.00 per share. The required rate of return on Frenall stock is 18.4 percent. Due to a major restructuring of the company’s production process, Frenall’s dividends are expected to decline by 25

Time had a bad year in 2001; the company suffered a net loss. The loss pushed most of the return measures into the negative column, and the current ratio dropped below 1.0. The company's debt ratio is still only .27. Assume top management of Time is
58. ## finance

5. Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim: Market Capitalization (\$ million) Expected Liquidating Dividend (\$ million) Beta Stock A 800 1000 0.77 Stock B 750 1000 1.46 Stock C 950
59. ## Finance

Suppose you are considering two investments, stock A and stock B. The beta of A is 1.20, and the beta of B is 0.80. Stock A has an expected return of 12% and Treasury Bills are yielding 3%. If the two stocks are fairly prices, what's the expected return on
60. ## Finance

Edwards Construction currently has debt outstandind with a market value of \$70,000 and a cost of 8%. The company has EBIT of \$5,600 that is expected to continue in perpetuity. Assume there are no taxes. What is the value of the company's equity? What is
61. ## Finance

Spam Corp. is financed entirely by common stock and has a beta of 1.0. The firm is expected to generate a level, perpetual stream of earnings and dividends. The stock has a price-earnings ratio of 8 and a cost of equity of 12.5%. The company's stock is
62. ## Finance-options

I need help on the following question. Suppose that you are the manager and sole owner of ahighly leveraged company. All the debt will mature in one year. If at that time the value of the company is greater than the face value of the debt, you will pay off
63. ## Finance

Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? (Points: 4) Market interest rates decline sharply. The company's bonds are downgraded. Market interest rates rise sharply. Inflation
64. ## math/stock

You want to create a \$75,000 portfolio comprised of two stocks plus a risk-free security. Stock A has an expected return of 13.6 percent and stock B has an expected return of 11.4 percent. You want to own \$30,000 of stock B. The risk-free rate is 4 percent
65. ## Finance

The following balance sheet extract relates to the Allied Insurance Company Bonds Payable \$1,000,000 Preferred Stock \$2,000,000 Common Stock \$3,000,000 Additional Information: 1. The bonds are 8%, annual coupon bonds, with 9 years to maturity and are
66. ## finace

15. Suppose that the following version of the APT is a good model of rick in the stock market. Consider three factors: the stock market’s excess return in percentage points, the change over the last year in the price of oil in dollars, and the spread
67. ## Finance

Assume that you are the assistant to the CFO of XYZ Company. Your task is to estimate XYZ's WACC using the following data: 1.The firm's tax rate is 40%. 2.The current price of the 12% coupon, semiannual payment, non-callable bonds with 15 years to maturity
68. ## Finance

Assume that you are the assistant to the CFO of XYZ Company. Your task is to estimate XYZ's WACC using the following data: The firm's tax rate is 40%. The current price of the 12% coupon, semiannual payment, non-callable bonds with 15 years to maturity is
69. ## Finance

3. Given the following information for Janicek Power Co., find the WACC. Assume the company’s tax rate is 35%. Debt: 8,500 7.2% coupon bonds outstanding, \$1000 par value, 25 years to maturity, selling for 118% of par; the bonds make semiannual payments
70. ## Financial Mgmt.

Nachman Industries just paid a dividend of D0 = \$1.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is
71. ## Finance

Sully Corp. currently has an EPS of \$2.35, and the benchmark PE ratio for the company is 21. Earnings are expected to grow at 7 percent per year. Requirement 1: What is your estimate of the current stock price? (Do not round intermediate calculations.
72. ## Financial management

evaluates investment opportunities using payback. The finance director who has been with the company since its formation in 1975, has recently heard that this method may not be the best for evaluating long term projects. You have been brought in to advise
73. ## finance

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the
74. ## Financial Management

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the
75. ## fin 3030

2. A new common stock issue paid a \$1.50 dividend last year. The par value of the stock is \$25, and earnings per share have grown at a rate of 3% per year. This growth rate is expected to continue into the foreseeable future. The company maintains a
76. ## statistics

What is the beta of a stock whose covariance with the market portfolio return is 0.0045 if the variance of the return on the market portfolio is 0.002?
77. ## fiance

You want to create a \$75,000 portfolio comprised of two stocks plus a risk-free security. Stock A has an expected return of 13.6 percent and stock B has an expected return of 11.4 percent. You want to own \$30,000 of stock B. The risk-free rate is 4 percent
78. ## Finance

The ACME Suction Cup company has \$4,500 of debt and \$10,500 of common stock equity. The total value of the company is \$15,000. The company's cost of equity is 11.5 percent, the cost of debt is 5.9 percent and the relevant tax rate is 35 percent. What is
79. ## finance

1. A bond has a \$1,000 par value (face value) and a contract or coupon interior rate of 8%. A new issue would have a flotation cost of 5% of the market value. The bonds mature in 10 years. The firm’s average tax rate is 28% and its marginal tax rate is
80. ## Finance

Sully Corp. currently has an EPS of \$2.14, and the benchmark PE ratio for the company is 20. Earnings are expected to grow at 7.5 percent per year. What is the target stock price in 1 year? Assuming that the company pays no dividends, what is the implied
81. ## math

It is equally probable that stock A will have a +10% or -10% rate of return The only other possibility is that it will return 0%.The probability of 0% is twice that for a return of +10%. What is the expected return and Standard deviation of the return for
82. ## finance

alpha of stock zero return on market 16% risk free rate 5% stock earns a return that exceeds risk free rate by 11% What is the Beta of the stock?
83. ## Accounting

What does the Market Value of a company's stock represent? What does the Book Value of a company stock represent? How is this accounting measurement used? Why is the Market Value of a stock usually greater than the Book Value of a stock?
84. ## investing

How do I find stock on margin rate of return? This is the question: Ed Delahanty purchased 500 shares of Niagara Corporation stock on margin at the beginning of the year for \$30 per share. The initial margin requirement was 55%. Ed paid 13% interest on the
85. ## Financial Management

A firm is trying to determine its optimal capital structure, the company's CFO beliefs that the optimal debt ratio is between 20% to 50% .Her staff has compiled the following projection of company 's EPS and stock price for different debt levels Debt ratio
86. ## Finance

Jim Bob is a stock picking genius. Every year, based on his system, he has the ability to invest \$100 (only) in a security that is expected to earn a 20% return over the next year. That security always has a beta of one. Assume that the risk free rate is
87. ## Finance

a share of preferred stock of MXT LTD. is expected to pay 1.0 per quarter into indefinite future. the current required annual expected rate of return, k, is 8%. suppose that an investor buys 10 shares today and wants to hold these shares for the next 2

California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of \$2 per share. The firm’s dividend is expected to grow at a constant rate of 5% per year, and investors require a 15 % rate of return on the stock. 1. What is
89. ## Finance

Which of the following is true regarding financial instruments? A) Common stock typically cost less than Debt B) Stock has limited liability C) Common Stockholders have a senior claim over Debt Holders D) Debt holders have voting rights E) Common dividend
90. ## finance

5.Capital Co. has a capital structure, based on current market values, that consists of 21 percent debt, 9 percent preferred stock, and 70 percent common stock. If the returns required by investors are 10 percent, 12 percent, and 17 percent for the debt,
91. ## Corporate Finance

5.Capital Co. has a capital structure, based on current market values, that consists of 21 percent debt, 9 percent preferred stock, and 70 percent common stock. If the returns required by investors are 10 percent, 12 percent, and 17 percent for the debt,
92. ## Corporate Finance

You are given the following for Cardinal & Cardinal, Inc. Their tax rate is 34%. The firm is in need of \$5 million dollars in external funds. Your bond advisor suggests that new bond issues can be lower than the current yield to maturity by 1.5% . Existing
93. ## accounting

4. Suppose a Midwest telephone company and telegraph MTT company bond maturing in one year can be purchased today for \$975 assuming that that the bond is held until maturity the investor will receive \$1000 principal plus 6 percent interest that is 0.06x \$

If Naomi invests in a stock portfolio, her returns for 10 or more years will average 10%-12%. Naomi realizes that the stock market has higher returns because it is a more risky investment than a savings account or a CD. She wants her calculations to be

If Naomi invests in a stock portfolio, her returns for 10 or more years will average 10%-12%. Naomi realizes that the stock market has higher returns because it is a more risky investment than a savings account or a CD. She wants her calculations to be
96. ## math/statistics

In a survey of 200 employees of a company regarding their 401(k) investments, the following data were obtained. 150 had investments in stock funds. 78 had investments in bond funds. 60 had investments in money market funds. 46 had investments in stock
97. ## math

In a survey of 200 employees of a company regarding their 401(k) investments, the following data were obtained. 150 had investments in stock funds. 78 had investments in bond funds. 60 had investments in money market funds. 46 had investments in stock
98. ## Finance

Byron Corporation's target capital structure consists of 40% debt and 60% common equity. Assume that the firm has no retained earnings. The company's the last dividend (Do) was \$2.00, which is expected to grow at a constant rate of 5%, and the current