Question # 00077629
Posted By: solutionshere
Updated on: 06/25/2015 04:16 AM Due on: 07/25/2015
Grading Summary
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These are the automatically computed results of
your exam. Grades for essay questions, and comments from your instructor,
are in the "Details" section below.
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Date Taken:
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6/7/2015
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Time Spent:
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06 min , 43 secs
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Points Received:
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10 / 20 (50%)
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Question Type:
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# Of Questions:
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# Correct:
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Essay
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3
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N/A
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Grade Details - All Questions
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Question 1.
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Question :
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(TCO C) Company A has a beta of 2.77. Company
B has a beta of .73. Company C has a beta of .90. The risk free rate is
6% and the market risk premium is 4%. What is the expected return of
investing in Company B? Show your work.
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Question 2.
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Question :
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(TCO C) Your stock portfolio consists of only
two stocks. You have $115,000 in Company A and $125,000 in Company B.
Company A has an actual return of -8% and Company B has a return of 12%.
What is the return on your portfolio? Show your work.
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Question 3.
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Question :
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(TCO E) A company has a capital structure of
50% debt and 50% equity. The YTM on the company’s bonds is 8%, and the
company’s effective tax rate is 40%. The cost of equity is 13%. What is
the company’s WACC? Show your work.
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Solution: Devry FIn515 quiz 5