Entries by Hannah Wangui

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Question A share of stock with a beta of .67 now sells for $42. Investors expect the stock to pay a year-end dividend of $3. The T-bill rate is 4%, and the market risk premium is 7%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price […]

 

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fixed costs

Question Modern Artifacts can produce keepsakes that will be sold for $100 each. Nondepreciation fixed costs are $1,200 per year, and variable costs are $80 per unit. The initial investment of $3,600 will be depreciated straight-line over its useful life of 3 years to a final value of zero, and the discount rate is 12%. […]

 

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case study

Question I am looking for some help on writing a case study on the following case and incorporated the answers to the following three questions. Read “Changing to Green at an Oil Company (?)” and answers to the following questions: 1.     What triggered Gabrielli’s commitment to going green at Petrobras? 2.     How would you evaluate Petrobras’ sustainability […]

 

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