# 10\$ via paypal whoever can answere these 10 finance questions

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

1. ### sayanoraBANNEDBANNED

Joined:
Jul 23, 2009
Messages:
267
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. ### oxgmanNewbie

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. ### LukaBJr. Executive VIPJr. VIP

Joined:
Apr 3, 2010
Messages:
4,682
Likes Received:
5,096
Gender:
Male
Location:
Planet Earth
Meh, I'm on holiday, don't remind me of School

4. ### anti_dotePower Member

Joined:
Dec 20, 2009
Messages:
762
Likes Received:
174
Occupation:
BlackHat IM
Location:
Under Your Bed
Grrr i hate Business Finance

5. ### neutralhatterRegular Member

Joined:
Jun 23, 2010
Messages:
437
Likes Received:
333
is this a survey or does only 1 person get 10 dollars?

6. ### pizzaboyRegistered Member

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

7. ### endre82Newbie

Joined:
Aug 10, 2009
Messages:
24
Likes Received:
5
u have to pay more than 10 dollars to devote my skills to it.

• Thanks x 2
8. ### angels1Registered Member

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

9. ### boussenaJunior Member

Joined:
Feb 12, 2009
Messages:
164
Likes Received:
70
even i m a forex trader, i won't lost 5min for that too low amount.

10. ### luckyzkhbkRegistered 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 x 1
11. ### andrewmNewbie

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. ### RansackedoutJunior Member

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

13. ### .david.Junior Member

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

14. ### CyberDilemmaRegular Member

Joined:
Apr 22, 2008
Messages:
321
Likes Received:
140
Paying someone \$10 to do your homework assignment for you. Not a bad idea for a lazy student.

15. ### aby2mariaNewbie

Joined:
Nov 7, 2010
Messages:
12
Likes Received:
2
hey you want an account at just answer ... lol

16. ### mani911Junior 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. ### RedWolfBANNEDBANNED

Joined:
Jul 26, 2010
Messages:
1,193
Likes Received:
832
me too :boxing:

18. ### mazgaliciSupreme Member

Joined:
Jan 2, 2009
Messages:
1,489
Likes Received:
882
Home Page:
Come on people, give him some fake answers, he doesn't know the answers