更多"An analyst does research about a ca"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 that has a weighted average cost of capital of 17 percent is considering an independent capital project that has the same risk as the company, an estimated internal rate of return of 19 percent and cash inflows that are expected at equal intervals over the life of the project. If the project is accepted, cash flows associated with the project are received as expected, and the company's weighted average cost of capital remains unchanged over the life of the project, the actual rate of return earned by the project is most likely to be:()
A. less than 19%.
B. more than 19%.
C. equal to 19%, because the actual cash flows equal the expected cash flows.
[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.