Rate of Return
State of
Probability Stock L
Economy
Recession
-20%
50%
Boom
70%
50%
100%
Rate of Return
Product
Stock L
Stock U
-10%
35%
25%
30%
10%
15%
5%
20%
Rate of Return
State of
Probability Stock L
Economy
Recession
-20%
80%
Boom
70%
20%
100%
Rate o
Probability
State of Economy of State
Recession
0.200
Normal
0.350
Boom
0.450
1.000
Stock A
-6.0%
11.0%
26.0%
Expected Rtn
Find the Expected Return of Stock A
A
The expected return of an asset is the sum of the probab
On December 31 you bought $ 4,000 supply of paper to print books and a book printer, which cost $100,000. T
100,000 for the printer immediately, by taking a long-term loan at 6% APR. You will depreciate the printer over 60
In January you used 20% of you p
First National Bank charges 12.4 percent compounded monthly on its business loans. First United Bank char
12.5 percent compounded semiannually. As a potential borrower, you decide to compare their effective annu
rates. First National Bank's business loans
Conner Samson
Prof Mendelman
Eng 102
November 11, 2016
Identity crisis
Have you ever asked yourself who you are? Why youre here? What your purpose is? If
you answered yes to any of these, chances are you might be going through an identity crisis.
Many tee
MGT313 PSP2 Homework Set #3
Projects, Breakeven Analysis
Each problem is worth up to 10 points each for a maximum of 60 points for the set.
1. Benham Instruments. A construction project has the steps shown in the table below.
a) Draw the network diagram,
Question 6.1
Stock Split
$50/share
Outstanding
200 shares
Pre Split :
Mkt Cap =
50*20
Post Split:
1000*5/4 =
P=
12500
12500/10000
Question 6.3 Total Assets
5000000
Total Debt
2800000
P/S 8%
400000
Outstanding
50,000
Total Liab. Without C/S
Book Value = TA
8-16
Organizational Ethics Audit Review
Company:_ Team Reps:_
Audit Reviewer:_
Directions: For each topic put a check in the box under the corresponding number, based on how well the topic was covered.
TOPIC
Not
Present
EVALUATION of
AUDIT TEAM
(1=poor/no
www.turnitin.com
Instructions For Students HRM 316
Step 1: Go to www.turnitin.com and select New User. From there, click Sign up for
turn it in.
Step 2: Next youll see the Create a New Account screen. Click on student and enter
all the requested informati
Make a difference in
lives of children
battling cancer
Dress up as super
heroes
More than 75,000
hats donated
What you do makes
a difference
NOV. 17, 2016
LOVE YOUR
MELON
More than 11,000
students at 700
colleges and
universities
Put a smile on kids with
State of Economy
Recession
Normal
Boom
A
Find Expected Returns
The expected return of an asset is the sum of the probability of each return occurring times the probability of
that return occurring.
State
A stock has a beta of 1.15, the expected return on the market is 11 percent, and the risk-free rate is
expected return on this stock must be
B
Use CAPM
Return Expected = Return Risk Free + *(Return Market-Return Risk
You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a bet
total portfolio is equally as risky as the market, what must the beta be for the other stock in yo
A
port = sto
Rate of Return
State of
Probability Stock L
Economy
Recession
-20%
50%
Boom
70%
50%
100%
Rate of Return
Product
Stock L
Stock U
-10%
35%
25%
30%
10%
15%
5%
20%
Rate of Return
State of
Probability Stock L
Economy
Recession
-20%
80%
Boom
70%
20%
100%
Rate o
Galaxy Interiors
2011 Income Statement
($ in Millions)
Net Sales
Cost of Goods Sold
Depreciation
EBIT
Interest
Taxes
Net Income
21,415
16,409
1,611
3,395
1,282
740
1,373
Galaxy Interiors
2011 Cash Flow
($ in Millions)
21,415
16,409
5,006
1,282
740
2,984
G
Academic Integrity Policy
Menlo College expects that students will do their own work and that their quizzes, tests, examinations, laboratory work, research papers,
essays, projects, internships, and all other assignments honestly reflect their own learnin
BOND X
a) Coupons
Present Value
number periods
$760.07
Par Value
Present Value
$408.84
26
number periods
26
rate
3.50%
rate
Payments
$45.00
Future Value
Total
Sum
$1,168.90
Total
Sum
$848.53
3.50%
$1,000.00
b) BOND Y
a) Coupons
Present Value
numb
Zero Coupon Bonds
a)
Coupons
Present Value
number periods
$0.00
Par Value
Present Value
$481.02
15
number periods
15
rate
rate
Payments
b)
5.00%
$0.00
Future Value
Present Value
$481.02
Capital Required
14,000,000
Bonds R
BOND X
a) Coupons
Present Value
number periods
$85.49
Par Value
Present Value
$933.51
2
number periods
2
rate
3.50%
rate
Payments
$45.00
Future Value
$65.54
Par Value
Present Value
$915.73
2
number periods
2
Total
Sum
$1,019.00
Total
Sum
$981.27
Net Profit?
CoGs
Tax rate
Scenarios
Net Sales
Cost of Goods Sold
Gross Profit
General and Admin.
Marketing
Depreciation
EBIT
Interest
Earnings before Taxes
Taxes (@ 25% rate)
Net Profit
50%
25%
Base case
$ 1,200,000
Best Case
#
Worst case
$800,000
Best Ca