The common stock of Air Express had annual returns of 11.7 percent, 8.8 percent, 16.7 percent, and −7.9 percent over the last four years, respectively. What is the standard deviation of these returns?

Gould Design has $1,000 face value bonds outstanding with 17 years to maturity, a coupon rate of 5 percent, semiannual interest payments, and a current price of $987.78. What is the aftertax cost of debt if the tax rate is 21 percent?

Seven years ago, you paid $324,800 to purchase a rental house. The maintenance expenses average $200 a month and property taxes are $4,800 annually. The house was recently appraised at $439,500. If you sell the house you will incur $14,200 in selling costs. If you decide to use the house as your office, what value should you assign it?

Cookie Dough Manufacturing has a target debt-equity ratio of .76. Its cost of equity is 15.3 percent, and its pretax cost of debt is 9 percent. What is the WACC given a tax rate of 21 percent?

Weisbrough United currently sells 410 units per month at a price of $249 per unit. The variable cost per unit is $132 and the carrying cost per unit is $3.30. The monthly interest rate is 1.2 percent. The firm believes it can increase its sales to 475 units per month if it switches from its cash-only policy to a net 30 credit policy. What is the present value of the switch using the one-shot approach?

Assume all stock prices fairly reflect all of the available information on those stocks. Which one of the following terms best defines the stock market under these conditions?

You own 850 shares of Bennett Trading stock valued at $53.15 per share. What is the dividend yield if your total annual dividend income is $1,256?

A project will produce operating cash inflows of $61,000 per year for 10 years in a row. The initial fixed asset investment in the project will be $94,000. The net aftertax salvage value is estimated at $7,000 and will be received during the last year of the project’s life. What is the net present value of the project if the required rate of return is 14.5 percent?

A proposed expansion project is expected to increase sales by $74,300 and increase cash expenses by $46,900. The project will require $52,800 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the five-year life of the project. The store has a marginal tax rate of 23 percent. What is the operating cash flow of the project using the tax shield approach? Ignore bonus depreciation.

Under its current cash sales-only policy Willard’s Company sells 176 units per month for a total sales value of $11,848. The variable cost per unit is $33 and the monthly interest rate is 1.1 percent. The firm should sell an additional 25 units per month if it offers a net 30 credit policy. What is the present value of the proposed switch using the accounts receivable approach?