Questions from Corporate Finance

Q: If the appropriate discount rate for the following cash flows

If the appropriate discount rate for the following cash flows is 7.17 percent per year, what is the present value of the cash flows?Year …………………………………………………………………………… Cash Flow1 …………………………………………………………...

Q: In Problem 27, suppose you’re confident about your own projections,

In Problem 27, suppose you’re confident about your own projections, but you’re a little unsure about Detroit’s actual machine screw requirement. What is the sensitivity of the project OCF to changes i...

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

Rework Problems 1 and 2 assuming the ending share price is $58.Data from Problem 2:In Problem 1, what was the dividend yield? The capital gains yield?Data from Problem 1:Suppose a stock had an initial...

Q: Suppose you bought a bond with an annual coupon of

Suppose you bought a bond with an annual coupon of 7 percent one year ago for $1,010. The bond sells for $985 today.a. Assuming a $1,000 face value, what was your total dollar return on this investmen...

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

What was the average annual return on large-company stocks from 1926 through 2016: a. In nominal terms?b. In real terms?

Q: In the previous problem, suppose the projections given for price,

In the previous problem, suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figures.P...

Q: In the previous problem, suppose the fixed asset actually qualifies

In the previous problem, suppose the fixed asset actually qualifies for 100 percent bonus depreciation in the first year. What is the new NPV?Previous problem:You have been hired as a consultant for P...

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. Data from Table 12.1:a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period.b....

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: 8 percent, −15 percent, 19 percent, 31 percent, and 21 percent.a. What was the arithmetic average retur...