An analyst gathered the following information for a stock and market parameters: stock beta = 1.341; expected return on the Market =  11.74%; expected return on T-bills =  1.10%; current stock Price =  $8.17; expected stock price in one year =  $9.68; expected dividend payment next year =  $2.92. Calculate the required return and expected return for this stock. Please write your answers as percentages (e.g. .1234 should be written as 12.34): Required Return: [1]% Expected Return: [2]%

There is a  23.44%  probability of a below-average economy and a  76.56%  probability of an average economy.  If there is a below-average economy, Stocks A and B will have returns of  -0.45%  and  2.83% , respectively.  If there is an average economy, Stocks A and B will have returns of  12.96%  and  16.10%, respectively. Compute the following for Stocks A and B:  (Please write all answers as percentages (e.g. .1234 should be written as 12.34): Stock A Expected Return: [1]% Stock B Expected Return: [2]% Stock A Standard Deviation: [3]% Stock B Standard Deviation: [4]%

A stock has an expected return of  7.56%  and a standard deviation of  11.41%. Compute the following for this stock (Please write all answers as percentages (e.g. .1234 should be written as 12.34): Upper range of 68% confidence interval: [1]% Lower range of 68% confidence interval: [2]% Upper range of 95% confidence interval: [3]% Lower range of 95% confidence interval: [4]% Upper range of 99% confidence interval: [5]% Lower range of 99% confidence interval: [6]%

You are invested 37.60% in growth stocks with a beta of 1.745, 38.70% in value stocks with a beta of 0.875, and 23.70% in the market portfolio.  What is the beta of your portfolio? After completing all calculations, please round your answer to four decimal places. Beta: [1]

There is a  40.70%  probability of a below-average economy and a  59.30%  probability of an average economy.  If there is a below-average economy, Stocks A and B will have returns of  -5.56%  and  -5.22% , respectively.  If there is an average economy, Stocks A and B will have returns of  5.19%  and  4.71%, respectively. Compute the following for Stocks A and B: (Please write all answers as percentages (e.g. .1234 should be written as 12.34): Stock A Expected Return: [1]% Stock B Expected Return: [2]% Stock A Standard Deviation: [3]% Stock B Standard Deviation: [4]%

A stock had the following annual returns: -6.11% , 19.56% , -21.74% , and -1.86%. Compute the following for the stock: Expected Return (Please write your answer as a percentage (e.g. .1234 should be written as 12.34)): [1]% Variance (Please write your answer with 4 decimal places): [2] Standard Deviation (Please write your answers as a percentage (e.g. .1234 should be written as 12.34)): [3]%

Your corporation is considering investing in a new product line.  The annual revenues (sales) for the new product line are expected to be  $151,232.00  with variable costs equal to 50% of these sales.  In addition annual fixed costs associated with this new product line are expected to be  $40,653.00 .  The old equipment currently has no market value. The new equipment cost  $89,229.00 .  The new equipment will be depreciated to zero using straight-line depreciation for the three-year life of the project. At the end of the project the equipment is expected to have a salvage value of  $38,316.00 .  An increase in net working capital of  $65,487.00  is also required for the life of the project.  The corporation has a beta of  1.128 , a tax rate of  41.63% , and a target capital structure consisting of  33.26%  equity and  66.74%  debt.  Treasury securities have a yield of  2.58%  and the expected return on the market is  12.76% . In addition, the company currently has outstanding bonds that have a yield to maturity of  5.34%. For answers that are dollar amounts, please round to the nearest two decimal places. For answers that are a percentage, please be sure to enter your answer as a percentage (for example, .1234 becomes 12.34%). What is the total initial cash outflow? (show as negative number): $[1] What are the estimated annual operating cash flows? $[2] What is the terminal cash flow? $[3] What is the corporations cost of equity? $[4] What is the WACC? [5]% What is the NPV for this project? $[6]

A firm has a WACC of 8.67% and is deciding between two mutually exclusive projects.  Project A has an initial investment of $64.04. The additional cash flows for project A are: year 1 = $17.73, year 2 = $36.79, year 3 = $63.83. Project B has an initial investment of $73.34. The cash flows for project B are: year 1 = $51.29, year 2 = $43.24, year 3 = $22.61. Calculate the following:  Payback Period for Project A (round your answer to the nearest 2 decimal places): [1] Payback Period for Project B (round your answer to the nearest 2 decimal places): [2] NPV for Project A: $[3] NPV for Project B: $[4]

Your corporation is considering investing in a new product line.  The annual revenues (sales) for the new product line are expected to be  $152,820.00  with variable costs equal to 50% of these sales.  In addition annual fixed costs associated with this new product line are expected to be  $57,244.00 .  The old equipment currently has no market value. The new equipment cost  $88,617.00 .  The new equipment will be depreciated to zero using straight-line depreciation for the three-year life of the project. At the end of the project the equipment is expected to have a salvage value of  $13,297.00 .  An increase in net working capital of  $56,318.00  is also required for the life of the project.  The corporation has a beta of  1.746 , a tax rate of  37.22% , and a target capital structure consisting of  58.42%  equity and  41.58%  debt.  Treasury securities have a yield of  2.29%  and the expected return on the market is  9.98% . In addition, the company currently has outstanding bonds that have a yield to maturity of  8.16%. For answers that are dollar amounts, please round to the nearest two decimal places. For answers that are a percentage, please be sure to enter your answer as a percentage (for example, .1234 becomes 12.34%). What is the total initial cash outflow? (show as negative number): $[1] What are the estimated annual operating cash flows? $[2] What is the terminal cash flow? $[3] What is the corporations cost of equity? $[4] What is the WACC? [5]% What is the NPV for this project? $[6]

Your corporation is considering investing in a new product line.  The annual revenues (sales) for the new product line are expected to be  $164,226.00  with variable costs equal to 50% of these sales.  In addition annual fixed costs associated with this new product line are expected to be  $57,491.00 .  The old equipment currently has no market value. The new equipment cost  $82,123.00 .  The new equipment will be depreciated to zero using straight-line depreciation for the three-year life of the project. At the end of the project the equipment is expected to have a salvage value of  $14,924.00 .  An increase in net working capital of  $57,466.00  is also required for the life of the project.  The corporation has a beta of  1.662 , a tax rate of  34.89% , and a target capital structure consisting of  51.13%  equity and  48.87%  debt.  Treasury securities have a yield of  1.55%  and the expected return on the market is  7.00% . In addition, the company currently has outstanding bonds that have a yield to maturity of  8.34%. For answers that are dollar amounts, please round to the nearest two decimal places. For answers that are a percentage, please be sure to enter your answer as a percentage (for example, .1234 becomes 12.34%). What is the total initial cash outflow? (show as negative number): $[1] What are the estimated annual operating cash flows? $[2] What is the terminal cash flow? $[3] What is the corporations cost of equity? $[4] What is the WACC? [5]% What is the NPV for this project? $[6]