Ques 41: The beta of Microsoft's stock is 1.2, whereas the riskfree rate of return is 4 percent. Assume that the expected return on the market is 16...
Ques 50: Bailey Company is considering developing a new iPhone app. The cost of development is expected to be $750,000 (all incurred in time zero) and management expects net cash flows from sale of the app to be $100,000 in year one and $150,000, $225,000, $250,000, $280,000 and $300,000 in years two through six, respectively. What is the Net Present Value of this project if the discount rate is 12%?
$88,764
$838,764
$555,000
$1,305,000
Ques 41: The beta of Microsoft’s stock is 1.2, whereas the riskfree rate of return is 4 percent. Assume that the expected return on the market is 16 percent. Then, what is the expected return on Microsoft stock? A. 8.80%B. 28.00%C. 18.40%D. 23.20%Ques 42: If you have a 3 year loan that requires $1,000 payments each year at 7% annual interest rate what would be the present value of the loan?A. $2,624.32B. $3,000.00C. $3,210.00D. $2,803.74Ques 43: Robert has a mortgage on his home of $400,000 and has a fixed rate mortgage of 6.125% for 30 years. What would his monthly payments be for this loan?A. $2,041.67B. $2,596.55C. $2,430.45D. $2,788.46Ques 44: What is the effective annual interest rate?A. The simplest interest rate charged.
B. Rate that reflects compounding.C. Rate with bank fees included.D. Interest rate quoted by banks.Ques 45: Stern Associates is considering a project that has the following cash flow data. What is the project's payback?Year012345Cash flows$1,100$300$310$320$330$340A.2.31 yearsB.2.56 yearsC.2.85 yearsD.3.16 yearsE.3.52 yearsQues 46: Oranges Inc. is considering a project that has the following cash flow and Cost of Capital data. What is the project's discountedpayback?Cost of Capital: 10.00%Year01234Cash flows$950$525$485$445$405A.1.61 yearsB.1.79 yearsC.1.99 yearsD.2.22 yearsE.2.44 yearsQues 47: Maxwell Food is considering a project that has the following cash flow data. What is the project's IRR? Year012345
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