Description
Complete the following problems from Chapters 8 and 9 in Principles of Managerial Finance:
- Risk and Return: P8-1; P8-4; P8-7; P8-14; P8-20; P8-23; P8-24
- Cost of Capital: P9-1; P9-2; P9-9; P9-14; P9-17
Use the Chapters 8-9 Excel resource (if needed) to complete the problem-set assignment in this topic.
Please show all work for each problem.
Explanation & Answer
Hey, I was able to find the questions for chapter 8, I still trying to find for chapter 9
chapter 8
Investment X
Market value
Current Market value
Cash flow
Rate of return
$ 20.000,00
$ 21.000,00
$ 1.500,00
12,50%
Investment Y
Starting market value
Current market value
Cash flow
Rate of return
$ 55.000,00
$ 55.000,00
$ 6.800,00
12,36%
b. Investment X would be recommended as it has a higher rate of return for an equal amount of risk.
a
Expansion A
Maximum return
Minimum return
Range
24%
16%
8%
Expansion B
Maximum return
Minimum return
Range
30%
10%
20%
b.
Project A is less risky since the range of outcomes for A is less than...
