1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

10$ via paypal whoever can answere these 10 finance questions

Discussion in 'Making Money' started by sayanora, Dec 2, 2010.

  1. sayanora

    sayanora BANNED BANNED

    Joined:
    Jul 23, 2009
    Messages:
    268
    Likes Received:
    76
    1. Williams Company stock has a beta of 1.3 and a required return of 13.1%, while Jones Inc. stock has a beta of .8 and a required return of 9.6%. The expected return on the market portfolio according to the CAPM is

    2. Cybersecure Corp. can sell common stock for $30 per share and its investors require a 12% return. However, the administrative or flotation costs associated with selling the stock amount to $2.00 per share. What is the cost of capital for Cybersecure if the corporation raises money by selling common stock?

    3. A corporate bond has a face value of $1,000 and a coupon rate of 9.5%. The bond matures in 12 years and has a current market price of $1,100. If the corporation sells more bonds it will incur flotation costs of $48 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital?

    4. A company has preferred stock that can be sold for $15 per share. The preferred stock pays an annual dividend of 3% based on a par value of $100. Flotation costs associated with the sale of preferred stock equal $1 per share. The company's marginal tax rate is 40%. Therefore, the cost of preferred stock is

    5. Li Holding Company paid a dividend yesterday of $3 per share (D0 = $3). The dividend is expected to grow at a constant rate of 5% per year. The price of Li's stock today is $22 per share. If Li decides to issue new common stock, flotation costs will equal $2 per share. Li's marginal tax rate is 40%. Based on the above information, the cost of retained earnings is

    6. Li Holding Company paid a dividend yesterday of $3 per share (D0 = $3). The dividend is expected to grow at a constant rate of 5% per year. The price of Li's stock today is $22 per share. If Li decides to issue new common stock, flotation costs will equal $2 per share. Li's marginal tax rate is 40%. Based on the above information, the cost of new common stock is

    7. The risk free rate of return is 2% and the market risk premium is 10%. Twindle Industries has a beta of 1.5 and a standard deviation of returns of 18%. Twindle's marginal tax rate is 35%. Analyst's expect Twindle's dividends to grow by at least 5% per year for the next 5 years. Using the capital asset pricing model, what is Twindle's cost of retained earnings?

    8. Jones Company has a target capital structure of 40% debt, 10% preferred stock, and 50% common equity. The company's after-tax cost of debt is 8%, its cost of preferred stock is 10%, its cost of retained earnings is 14%, and its cost of new common stock is 16%. The company stock has a beta of 1.2 and the company's marginal tax rate is 35%. What is the company's weighted average cost of capital if retained earnings are used to fund the common equity portion?

    9. S&S Corp. is investing in a major capital budgeting project that will require the expenditure of $10 million. The money will be raised by issuing $3 million of bonds, $1 million of preferred stock, and $6 million of new common stock. The company estimates is after-tax cost of debt to be 6%, its cost of preferred stock to be 8%, the cost of retained earnings to be 12%, and the cost of new common stock to be 15%. What is the weighted average cost of capital for this project?

    10. Given the following information on S & G Inc.'s capital structure, compute the company's weighted average cost of capital.

    Type of Percent of Before-Tax
    Capital Capital Structure Component Cost

    Bonds 40% 7.5%
    Preferred Stock 5% 11%
    Common Stock (Internal Only) 55% 15%

    The company's marginal tax rate is 40%.
     
  2. oxgman

    oxgman Newbie

    Joined:
    Sep 17, 2010
    Messages:
    38
    Likes Received:
    6
    Wow, haven't seen some of these questions since economics! Best to leave these to a stock analyst.
     
  3. LukaB

    LukaB Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 3, 2010
    Messages:
    3,548
    Likes Received:
    4,248
    Gender:
    Male
    Location:
    Planet Earth
    Meh, I'm on holiday, don't remind me of School :p
     
  4. anti_dote

    anti_dote Power Member

    Joined:
    Dec 20, 2009
    Messages:
    658
    Likes Received:
    153
    Occupation:
    BlackHat IM
    Location:
    Under Your Bed
    Grrr i hate Business Finance
     
  5. neutralhatter

    neutralhatter Jr. VIP Jr. VIP Premium Member

    Joined:
    Jun 23, 2010
    Messages:
    430
    Likes Received:
    330
  6. pizzaboy

    pizzaboy Registered Member

    Joined:
    Sep 27, 2010
    Messages:
    64
    Likes Received:
    9
    I don't need $10 . Thanks
     
  7. endre82

    endre82 Newbie

    Joined:
    Aug 10, 2009
    Messages:
    18
    Likes Received:
    3
    u have to pay more than 10 dollars to devote my skills to it.
     
    • Thanks Thanks x 2
  8. angels1

    angels1 Registered Member

    Joined:
    May 17, 2010
    Messages:
    65
    Likes Received:
    101
    add all those numbers together and you get my pay.
     
  9. boussena

    boussena Junior Member

    Joined:
    Feb 12, 2009
    Messages:
    159
    Likes Received:
    66
    even i m a forex trader, i won't lost 5min for that too low amount.
     
  10. luckyzkhbk

    luckyzkhbk Registered Member

    Joined:
    Dec 13, 2010
    Messages:
    68
    Likes Received:
    2
    i'm Accountancy and Finance student i have done corporate financial management so i know how to do these questions but i cant do them for just $10 you need to pay more.
     
    • Thanks Thanks x 1
  11. andrewm

    andrewm Newbie

    Joined:
    Feb 24, 2008
    Messages:
    31
    Likes Received:
    2
    Do your own homework. The $10 will be no use when you have to sit an exam.
     
  12. Ransackedout

    Ransackedout Junior Member

    Joined:
    Jun 26, 2010
    Messages:
    138
    Likes Received:
    36
    Occupation:
    Mind Guru
    Location:
    Where the french fries are golden
    Home Page:
    $10, isn't worth the headache.
     
  13. .david.

    .david. Junior Member

    Joined:
    Jul 20, 2010
    Messages:
    197
    Likes Received:
    36
    Location:
    California
    lol.. exactly what I thought too.
     
  14. CyberDilemma

    CyberDilemma Regular Member

    Joined:
    Apr 22, 2008
    Messages:
    322
    Likes Received:
    139
    Paying someone $10 to do your homework assignment for you. Not a bad idea for a lazy student.
     
  15. aby2maria

    aby2maria Newbie

    Joined:
    Nov 7, 2010
    Messages:
    10
    Likes Received:
    2
    hey you want an account at just answer ... lol
     
  16. mani911

    mani911 Junior Member

    Joined:
    Jun 17, 2010
    Messages:
    192
    Likes Received:
    197
    Occupation:
    Student Of bachelors in business
    Location:
    Lahore Pakistan
    i'll pay you 10 $ via paypal to get this off and done by yourself LOL
     
  17. RedWolf

    RedWolf BANNED BANNED

    Joined:
    Jul 26, 2010
    Messages:
    1,193
    Likes Received:
    828
    me too :boxing:
     
  18. mazgalici

    mazgalici Supreme Member

    Joined:
    Jan 2, 2009
    Messages:
    1,489
    Likes Received:
    881
    Home Page:
    Come on people, give him some fake answers, he doesn't know the answers ;)