Entries by mary WAMBUGU

You have run a regression of monthly returns on TXBT, a large biotechnology firm, against monthly returns on the S&P 500 index, and come up with the following output RStock= 2.34% + 1.77 x RMarket R2= 0.4 The current one-year Treasury bill rate is 3.3 and the current thirty-year bond rate is 8%. The firm has 132 million shares outstanding, selling for $73.36 per share. The short term equity risk premium is 5.1 and the long term equity risk premium is 7.7. What is the expected return on this stock over the next year? (Answer Format to two decimal places with NO PERCENT SIGN, for example, for three percent put: 3.00)

August 26, 2019 in /by

You have run a regression of monthly returns on TXBT, a large biotechnology firm, against monthly returns on the S&P 500 index, and come up with the following output RStock= 2.34% + 1.77 x RMarket R2= 0.4 The current one-year Treasury bill rate is 3.3 and the current thirty-year bond rate is 8%. The firm […]

 

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What happens to the ROC for a project if we use accelerated depreciation? Select one:

August 26, 2019 in /by

What happens to the ROC for a project if we use accelerated depreciation? Select one: a. It would decrease the yearly ROC for the depreciation amounts greater than the straight-line amount.b. It would increase the yearly ROC for the depreciation amounts less than straight-line amount.c. It would likely increase the project’s average ROCd. Two of the abovee. All of the […]

 

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You estimate the pre-tax return on capital, by year and on average, for the project. You also, estimate the after-tax return on capital, by year and on average, for the project. If the firm faced a cost of capital of 12%, should it take this project? Select one: a. Yes, if the after-tax ROC is greater than 12%b. Yes, if the pre-tax ROC is greater than 12%c. No, if the pre-tax ROC is less than 12%d. Two of the abovee. All of the above

August 26, 2019 in /by

You estimate the pre-tax return on capital, by year and on average, for the project. You also, estimate the after-tax return on capital, by year and on average, for the project. If the firm faced a cost of capital of 12%, should it take this project? Select one: a. Yes, if the after-tax ROC is greater […]

 

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What is the house cost on a 20 percent down mortgage with payments of $2,706.27 per month for 15 years at 9 percent interest?

August 26, 2019 in /by

What is the house cost on a 20 percent down mortgage with payments of $2,706.27 per month for 15 years at 9 percent interest?   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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