1. Daves Fish and Chips has a beta of 1.2, a variance of .0060, a growth rate of 3 percent, a stock price of $25
a share, and is expected to pay $0.55 as their next annual dividend. The market rate of return is 8.5 percent
and the risk-free rat
Business Finance- Notes
Finance- Finding the value of something.
The value of an asset is the present value of future cash flows.
-Where to invest the funds? (Capital Budgeting)
-Where do we get the funds?
a) Internally generat
You are interested in purchasing a car upon graduation. With your new job, you will be able
to pay $250 per month. If your bank will loan you the money for five years at 6% APR, how
much can you afford to pay for the car today?
You are looking t
1. If your company pays a constant annual dividend of $.25 a share and currently sells for
$10 a share. What is the rate of return?
2. Last year your company paid an annual dividend of $1.25 per share. You, as company
president, just announced t
1. Two years ago, you purchased a stock at a price of $15.22. The stock pays quarterly dividends of
$0.32 per share. Today, the stock is selling for $25.20 per share. What is your capital gain on this
2. You own 400 shares of XZZ Co
Final Study Guide- Business Finance
1. Advantages, disadvantages, characteristics of partnership, sole proprietorship, and corporation
Characteristics of Partnership:
Can raise more funds than sole proprietorships