更多"An analyst does research about capi"的相关试题:
[单项选择]An analyst does research about capital budgeting and gathers the following information about two independent projects:
| NPV | IRR |
| Project 1 | $121200 | 16.7% |
| Project 2 | $919790 | 13.6% |
If there is no capital rationing and the company's cost of capital is 10.5%, the company should invest in:（）
A. Project 1.
B. Project 2.
C. both Project 1 and Project 2.
[单项选择]An analyst does research about capital structure and gathered the following information about a company:
·Return on assets is 5.0%
·Financial leverage (Total assets/equity) is 2.5
·Beta for the company's stock is 1.5
If the company wants to achieve a growth rate of 10% without changing its capital structure or issuing new equity, the maximum dividend payout ratio for the company would be closest to:
A. 10.0%
B. 12.5%
C. 20.0%
[单项选择]An analyst does research about capital structure. Which of the following is the least appropriate method to estimate the capital structure weights when a company's target capital structure is unknown to analysis
A. Using the book value of capital components.
B. Using industry average capital components.
C. Analyzing trends in capital components to infer the target capital structure.
[单项选择]An analyst does research about capital asset pricing model approach and gathers the following information about a company and the market:
| Equity beta | 1.5 |
| Equity risk premium | 15% |
| Risk-free rate | 3% |
| Before-tax cost of company's debt | 9% |
Using the capital asset pricing model approach, the company's cost of equity capital is closest to:（）
A. 18.0%
B. 21.0%
C. 25.5%
[单项选择]An analyst does research about capital market line (CML). According to capital market theory, if an investor holds a portfolio that lies on the capital market line to the left of the market portfolio, that investor should expect that his portfolio will:（）
A. eam less than the return on the market portfolio.
B. earn more than the return on the market portfolio.
C. haveless unsystematic risk than the market portfolio.
[单项选择]An analyst does research about capital budgeting. A company's existing capital structure is 35 percent debt and 65 percent common equity, which is the same as the company's target capital structure. The company's marginal tax rate is 35 percent. The company has determined that an independent capital project has an expected net present value of $30000. The amount of the expected net present value that accrues to the company's creditors is closest to:（）
A. $0
B. $6825
C. $12675
[单项选择]An analyst does research about a capital project and gathers the following end of year cash flow information with an initial investment of $5000:
| Year | Cash Flow |
| 1 | $2000 |
| 2 | $3000 |
| 3 | -$1000 |
| 4 | $2000 |
| 5 | -$800 |
The company's marginal cost of capital is 6% and the project's required rate of return is 7%. The project's net present value is closest to:（）
A. -$296
B. -$371
C. -$412
[单项选择]An analyst does research about the capital asset pricing model and gathers the following information about a security and the market portfolio:
| Beta of the security | 1.25 |
| Market portfolio premium | 8% |
| Risk-free rate | 3% |
Based on the CAPM, the security's expected return is closest to:（）
A. 9.25%
B. 11.00%
C. 13.00%
[单项选择]An analyst does research about cost of capital and gathers the following information about a company's proposed investment projects for 2012:
| Project | Initial Investment(million) | NPV (million) | IRR |
| 1 | $21 | $2.4 | 21% |
| 2 | $23 | $1.6 | 19% |
| 3 | $19 | $0.8 | 17% |
| 4 | $19 | $0.6 | 14% |
| 5 | $31 | -$1.0 | 12% |
If the analyst's calculations are accurate, the each of the projects has the predicted cash flow pattern and the same risk as the company, the company's cost of capital is closest to:（）
A. 12%
B. 13%
C. 14%
[单项选择]An analyst does research about the cost of capital and gathers the following information about a company:
·Current share price is $60
·Current annual dividend per share is $1.50
·Stable retention ratio is 40%
·Historical return on equity is 12%
Using the dividend discount model approach, the cost of equity is closest to:
A. 7.30%
B. 7.42%
C. 9.88%
[单项选择]An analyst does research about cost of capital. All else being equal, if a U. S. company's marginal tax rate decreases, the company's weighted average cost of capital will most likely:
A. decrease.
B. remain unchanged.
C. increase.
