What is the NPV for the following project cash flows at a discount rate of 15%? C0=-1,000, C1=700, C2=700

SOB Floor Company has a risk premium of 21% and a beta of 3. If the risk free rate is 3%, what should be the total expected market return?

If DRT Company has a beta of 2.2, the market return is expected to be 10% and the current risk-free rate is 2%, what should be the total risk premium for DRT?

SPUR Inc. has an expected total return of 35%. If the S&P 500 returns is 12%, the current t-bill rate is 3%, what is SPUR's beta?

Deff Company had a decrease in its net working capital by $350 this year. Its EBIT was $3200, depreciation expense of $210, capital expenditures of $100 and an applicable corporate tax of 20%. What should be the FCF for Deff Company this year?

What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the cost of capital is 10%?

Fruity Inc. has an expected total return of 15% and has a beta of 2. The risk-free rate is 5%. What is the expected market risk premium?

XYZ stock just paid a dividend of $4.10. This company is expected to have a "super-normal-growth of 15% for the first two years and then settle to 4% growth forever after that. If the cost of equity is 6%, what should be the approximate stock price today (P0)?

What is the approximate cost of equity if a stock is currently selling for $120, just paid a dividend of $5 and has an anticipated growth rate of 3%?

What constant-growth rate in dividends is expected for a stock valued at $32.00 (today) is next year's dividend is forecast at $2.00 and the appropriate cost of equity is 13%?

What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of $20, and a constant dividend growth rate of 6%?

ABC common stock is expected to have extraordinary growth of 20% per year for 2 years, at which time the growth rate will settle into a constant 6%. If the discount rate is 15% and the dividend that was just paid is $2.50, what should be the approximate current share price?

What must be the initial investment requirement if a project that has a present value of all cash inflows of $28,000 also has a negative NPV of $3000?

Robert Company is trying to see where it is a good idea to invest in a short-term installation project. The investment has the following projected cash flows:

Year 1 $200,000

Year 2 $100,000

Year 3 $100,000

Year 4 $0

Year 5 $250,000

This project will also yield $50,000 salvage value at the end of the 5^th year through the sale of used machinery. Robert Co. has a D/E ratio of 2/1. The current bond ($1000 face-value) for Robert is selling for $1050. This bond has a coupon rate of 6% which are paid semi-annually and 10 years to maturity. Robert is using the CAPM to calculate its cost of equity. It has a beta of 1.5. The current 5-year treasury bond has a 3.5% yield. For the corresponding period, the S&P 500 index has a return of 12%. The applicable corporate tax rate for Robert Co. is 20%.

What is cost of debt for Robert Co. before taxes?

What is the cost of debt for Robert Co. after taxes?

What is the cost of equity for Robert Co.?

What is the weighted average cost of capital for Robert Co.?

What is the NPV for this project and is this a good investment?

What is the coupon rate of a bond that is priced at $1025 when coupon payments are made monthly, there is 15 years to maturity and the current market rate is 5%?

Please calculate the price of a bond that has a $1000 face value, 9% coupon rate (paid quarterly), 6% yield-to-maturity and 10 years to maturity.

What must be the coupon rate of a bond that pays yearly coupons, has a price of $880 and current yield of 13.64%?

Answer rating: 100% (QA)

Answer 1 What is the NPV for the following project cash flows at a discount rate of 15 C01000 C1700 C2700 The NPV for this project is calculated using the formula NPV C0 C1 1 r1 C2 1 r2 Substituting i... View the full answer