If the beta of exxon mobil is 0.65, risk-free rate is 4% and the


Question #1

If the beta of Exxon Mobil is 0.65, waste-free reprove is 4% and the communicate reprove of produce is 14%, objurgate the look-fored reprove of produce for Exxon.

Question #2
Given the forthcoming axioms for the a fund: waste-free reprove = 5%; beta (market) = 1.5; beta (size) = 0.3; beta (book-to-market) = 1.1; communicate waste prize = 7%; magnitude waste prize = 3.7%; and book-to-communicate waste prize = 5.2%. Objurgate the look-fored produce on the fund using the Fama-French three-factor example.

Question #3
Johnson Paint fund has an look-fored produce of 19% behind a time a beta of 1.7, time Williamson Tire fund has an look-fored produce of 14% behind a time a beta of 1.2. Assume the CAMP is gentleman.

(a). What is the look-fored produce on the communicate?
(b). What is the waste-free reprove?
(c). What is the communicate waste prize?

Question #4

The communicate compute of Charcoal Corporation's base fund is $20 favorite, and the communicate compute of its waste-free claim is $5 favorite. The beta of the society's base fund is 1.25, and the communicate produce (Km) is 13%. If the Treasury charges reprove (Rf) is 5%, what is the society's absorb of consummate? (Assume no taxes.)

Question #5
A purpose has an look-fored wastey specie course of $300, in year 3. The waste-free reprove is 5%, the communicate waste prize is 8% and the purpose's beta is 1.25. Objurgate the confidence equipollent specie course for year 3.

Question #6

The equity recitals of Bio-Tech Society is as follows:

Suppose the fast sells 2,000,000 new (additional) divides at a figure of $19 per divide. What is the new compute of Base Shares recital? What is the new compute of the concomitant paid-in-consummate recital?

Question #7

Given the forthcoming axioms for U&P Company: Claim (D) = $100 favorite; Equity (E) = $300 Million; rD = 6%; rE = 12% and TC = 30%. Objurgate the behind-tax weighted mean absorb of consummate (WACC):

Question #8

Learn and Earn Society is financed altogether by Base fund that is figured to present a 20% look-fored produce. If the society repurchases 50% of the fund and substitutes an resembling compute of claim conceding 8%, what is the look-fored produce on the base fund behind refinancing?

Question #9

Consider two fasts, Behind a time and Without, that bear particular effects that genereprove particular specie courses. Without is an all-equity fast, behind a time 1 favorite divides unappropriated that commerce for a figure of $24 per divide. Behind a time has 2 favorite divides unappropriated and $12 favorite dollars in claim at an curiosity-behalf reprove of 5%. According to MM Proposition 1, what is the fund figure for With?


Question #10

Consider a one-year, $1000, zero-coupon chain issued. Assume that the chain payoffs are fitful. There is a 50% accident that the chain accomplish reward its countenance compute in unmeasured and a 50% accident that the chain accomplish lapse and you accomplish accept $900. Thus, you would look-for to accept $950. Because of the fitfulty, the abatement reprove is 5.9%. Objurgate the promised submit on the chain.