Questions from Corporate Finance

Q: Rework Problems 1 and 2 assuming the ending share price

Rework Problems 1 and 2 assuming the ending share price is $83.Problems 1:what was the dividend yield? The capital gains yield?Problems 2:Suppose a stock had an initial price of $91 per share, paid a...

Q: Suppose you bought a 7 percent coupon bond one year

Suppose you bought a 7 percent coupon bond one year ago for $1,040. The bond sells for $1,070 today.a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past...

Q: What was the average annual return on large-company stock from

What was the average annual return on large-company stock from 1926 through 2007:a. In nominal terms?b. In real terms?

Q: Fama’s Llamas has a weighted average cost of capital of

Fama’s Llamas has a weighted average cost of capital of 8.9 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.9 percent. The tax rate is 35 percent. What is the com...

Q: Using the following returns, calculate the arithmetic average returns, the

Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y.,,,

Q: Refer to Table 12.1 in the text and look at

Refer to Table 12.1 in the text and look at the period from 1970 through 1975.Table 12.1:a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period.b. Calculate...

Q: You’ve observed the following returns on Crash-n-Burn Computer’s stock over

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 7 percent, - 12 percent, 11 percent, 38 percent, and 14 percent.a. What was the arithmetic average retu...

Q: For Problem 9, suppose the average inflation rate over this

For Problem 9, suppose the average inflation rate over this period was 3.5 percent and the average T-bill rate over the period was 4.2 percent.Problem 9:You’ve observed the following returns on Crash-...

Q: Given the information in Problem 10, what was the average

Given the information in Problem 10, what was the average real risk-free rate over this time period? What was the average real risk premium?Problem 10:suppose the average inflation rate over this peri...

Q: Look at Table 12.1 and Figure 12.7 in the text.

Look at Table 12.1 and Figure 12.7 in the text. When were T-bill rates at their highest over the period from 1926 through 2007? Why do you think they were so high during this period? What relationship...