Corporate Investment and Finance

Oct 24th, 2015
RockCafe
Category:
Business & Finance
Price: $15 USD

Question description

NEED HELP ASAP FOR MY FINAL! POSTED THIS A WEEK AGO AND THE TUTOR JUST NEVER DID IT OR RESPONDED, WHICH IS LEAVING ME WITH VERY LITTLE TIME LEFT. PLEASE HELP, I AM A GOOD PAYING CUSTOMER.
  1. The market value of Charter Cruise Company's equity is $25 million, and the market value of its risk-free debt is $10 million. If the required rate of return on the equity is 12% and that on the debt is 7%, calculate the company's cost of capital. (Assume no taxes.) 
  2. The market value of Charcoal Corporation's common stock is $40 million, and the market value of its risk-free debt is $15 million. The beta of the company's common stock is 1.45, and the market risk premium is 6%. If the Treasury bill rate is 4%, what is the company's cost of capital? (Assume no taxes.) 
  3. The market value of XYZ Corporation's common stock is $140 million and the market value of the risk-free debt is $160 million. The beta of the company's common stock is 0.65, and the expected market risk premium is 5.5%. If the risk free rate  4%, what is the firm's cost of capital? (Assume no taxes.) 
  4. You are given the following data for year-1. Revenue = $80; Cash operating cost (excluding depreciation expense) = $53; Depreciation = $13; Tax rate = 40%. Calculate the operating cash flow for the project for year-1. 
  5. You are given the following data for year-1: Revenues = $350, Fixed costs excluding depreciation = $130; Total variable costs = 50% of revenues; Depreciation = $40; Tax rate = 30%. Calculate the after tax cash flow for the project for year-1. 
  6. A project has the following cash flows: C0= -200,000; C1= 77,000; C2= 115,000; C3= 120,000. If the discount rate changes from 10% to 12%, what is the change in the NPV of the project (approximately)? 
  7. You have three stocks in your portfolio as follows:                                                                                                                                            Amount                            Beta

Investment A  100,000                              .7

Investment B  300,000                           1.05

Investment C    50,000                         1.45

What is the portfolio beta?


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UIUC
PREMIUM TUTOR

Studypool has helped 1,244,100 students

3 Reviews


Summary
Quality
Communication
On Time
Value
BlueOcean
Nov 11th, 2016
" Awesome! Exactly what I wanted. "
ashleyisgod
Oct 20th, 2016
" Top quality work from this guy! I'll be back! "
Molly_Moon
Sep 27th, 2016
" AMAZING as always! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors