Directions True or False   If I have technical problems with any platform database, such as a computer crashing or Proctorio requiring an access code, I should contact my instructor immediately.

Leslie Industries is considering the following independent projects for the coming year: Project RequiredInvestment ExpectedRate of Return Risk X $8 million 11.5% High Y   8 million   6.5% Average Z   3 million   7.0% Low Leslie’s WACC is 8 percent, but it adjusts for risk by adding 2 percent to the WACC for high-risk projects and subtracting 2 percent for low-risk projects.  Which project(s) should Leslie accept assuming it faces no capital constraints?

Loyd & Associates’ common stock currently trades at $65 a share.  It is expected to pay an annual dividend of $3.58 a share at the end of the year (D1 = $3.58), and the constant growth rate is 5.7 percent a year.  What is the company’s cost of common equity if all of its equity comes from retained earnings?

If a firm’s beta is 1.2, the risk-free rate is 4.5%, and the expected return on the market is 9.5%, what will be the firm’s cost of equity using the CAPM approach?

If a firm’s beta is 1.4, the risk-free rate is 5.5%, and the expected return on the market is 12.5%, what will be the firm’s cost of equity using the CAPM approach?

Leslie Industries is considering the following independent projects for the coming year: Project RequiredInvestment ExpectedRate of Return Risk X $3 million 12.0% High Y   2 million 10.0% Average Z   5 million 10.5% Low Leslie’s WACC is 11.5 percent, but it adjusts for risk by adding 2 percent to the WACC for high-risk projects and subtracting 2 percent for low-risk projects.  Which project(s) should Leslie accept assuming it faces no capital constraints?

Which of the following change in the working capitals increase the cash flow of the firm (that is, result in the cash inflow), holding other things constant?

Leslie Industries is considering the following independent projects for the coming year: Project RequiredInvestment ExpectedRate of Return Risk X $3 million 11.0% High Y   3 million   9.0% Average Z   5 million   4.5% Low Leslie’s WACC is 8 percent, but it adjusts for risk by adding 2 percent to the WACC for high-risk projects and subtracting 2 percent for low-risk projects.  Which project(s) should Leslie accept assuming it faces no capital constraints?

A firm with a 10 percent cost of capital is evaluating two projects for this year’s capital budget.  The projects’ expected after-tax cash flows are as follows: Year: 0 1 2 3 Project X: -$13,000 $6,900 $5,600 $6,000 Project Y: -$14,000 $5,500 $6,000 $6,600 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?

Spelling, punctuation, and accent mark count toward grading.  Misspelled, wrong tense, or wrong form of verbal conjugation (- full points worth).  Missing article, conjunction, or preposition (-1/2 point). Missing accents from the words you have been exposed to during the chapter, punctuation–periods, capital letters, upside-down exclamation or question marks–If needed (-1/4 points). Missing a complete sentence (-1 point) per sentence.   Accent Marks Please write me a short message, in parenthesis, next to the word that needs it, for instance: You need to write  ¡Mi mamá comprará el juguete mañana para Iván! You will write it like (upside-down exclamation mark) Mi mama (accent on the 2nd a) comprara (accent on the second a) el juguete manana (tilde over the 1st n) para Ivan (accent on a)! Notice that when there is more than one repeated vowel/consonant, I used more details on which vowel/consonant the accent mark was placed–mamá, mañana, etc. Unlike the name “Ivan,” which has one accentuated vowel.   Directions Look at the report and answer the questions with sentences. Write the numerals as words as you have learned in Chapter 2. Estadísticas Escolares Estudiantes Información académica  Número total de estudiantes: 2.650      Especialidades: 35  Número de chicos: 1.134    Actividades extraescolares: 42  Número de chicas: 1.516   Profesores: 105   ¿Cuántos estudiantes, en total, hay en la escuela? Please answer all the following questions in complete Spanish sentences, not a one-word answer.  Remember, do not write the number digits; spell out the number, like fourteen, and do not use 14.