Question: Hi, can you please help answer these multi choice questions. Thanks! (all info provided) Question 18 You are analysing a share that has a beta

Hi, can you please help answer these multi choice questions. Thanks! (all info provided)

Hi, can you please help answer these multi choiceHi, can you please help answer these multi choiceHi, can you please help answer these multi choiceHi, can you please help answer these multi choiceHi, can you please help answer these multi choice
Question 18 You are analysing a share that has a beta of 1.2. The risk-free rate is 5% and you estimate the market risk premium to be 6%. What is the expected return of the stock using CAPM? (2 marks) 12.2% C 7.2% 10.0% 6.2%Question 19 A portfolio holds shares in three companies. Given the information for each company in the table above, calculate the portfolio weighting for each company. (4 marks) Company Number of shares Current share price RIO 200 $126.70 BHP 450 $78.40 FMG 630 $23.05 CRIO: 33.7%; BHP: 47.0%; FMG: 19.3% CRIO: 15.6%; BHP: 35.2%; FMG: 49.2% CRIO: 30%; BHP: 40%; FMG: 30% C RIO: 47%; BHP: 33.7%; FMG: 19.3%Question 20 Frank wants to include a new stock in his portfolio. The new stock is a zero-beta stock. What is the correlation of the zero-beta stock with Frank's portfolio? (2 marks) C Greater than O. C Less than 0. C Unable to say. C Equal to O.Question 21 2 points Save Answ The manager of Socks Shoes and Friends is considering building a new factory. The inhouse analyst prepares the following NPV profile, which illustrates NPVs (y-axis, in million $) for each corresponding discount rate (x-axis, %). Based on this NPV profile, which of the following is correct? (2 marks) NPV 10 Discount Rate (%) 10 15 20 -10 ITTTT -20 TTTT -30 TITT The project can generate at least $10 million free cash flows every year. The maximum NPV that this project can make is roughly $15 million. The project can generate a positive NPV when the discount rate is 7%. The lower the discount rate, the higher the NPV.Question 22 Which of the following statements is INCORRECT? (2 marks) CFree Cash Flow = (Revenues - Costs - Depreciation) x (1 - tax%) - Capital Expenditures - ANWC + tax% x Depreciation. CA decrease in current assets increases a project's free cash flows. The depreciation tax shield is the tax savings that results from the ability to deduct depreciation from earnings before tax. C A new product that decreases the sales of existing products needs to be included in incremental cash flows

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