Group Project Sign-Up: Portfolio Management
By signing this document, we agree that:
1. We will work as a team for the duration of the semester. We will all
contribute to the best of our abilities in order to successfully complete the
Problem 1.1 Production and Consumption
Comparative Advantage. Problems 1 - 5 illustrate an example of trade induced by comparative advantage. They
assume that China and France each have 1,000 production units. With one unit of production (a mix of land, l
Chapter 19 Financial Leverage and Capital Structure Policy
Questions from the required textbook at the end of Chapter 19
8. Remote Removals Ltd has no debt and its WACC is currently 12%. Remote can
borrow at 8%. The corporate tax rate is 30%.
a. What is R
Chapters 10 and 11 Risk and Return
Questions from the required textbook at the end of Chapter 10
3. Business shares have an initial price of $6.6 per share, paid a dividend of $0.396
per share during the year, and had an ending price of $5.874 per share.
Chapters 8 and 9 Capital Budgeting
Questions from the required textbook at the end of Chapter 8
4. The new computer system of Tim Foods Ltd cost $96,000. Tim will outgrow in 3
years. When Tim sells it, it will probably only get 20% of the purchase price.
Chapter 17 Shareholder value and the Cost of Capital
Questions from the required textbook at the end of Chapter 17
1. Equity in the Abby Group has a beta of 1.27. The market risk premium is 7%,
and the risk-free is 4%. Abbys last dividend was 50 per share