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The stock of Big Joe’s has a beta of 1.46 and an expected return of 12.40 percent. The risk-free rate of return is 4.9 percent. What is the expected return on the market?

Which one of the following statements concerning scenario analysis is correct?

Gateway Communications is considering a project with an initial fixed assets cost of $1.74 million that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $232,000. The project will not change sales but will reduce operating costs by $383,500 per year. The tax rate is 21 percent and the required return is 10.7 percent. The project will require $48,000 in net working capital, which will be recouped when the project ends. What is the project’s NPV?

Saucier Company currently sells 1,208 units per month for total monthly sales of $209,600. The firm is considering replacing its current cash-only credit policy with a net 30 policy. The variable cost per unit is $106 and the monthly interest rate is .71 percent. What is the new sales quantity at the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant.

A stock had returns of 17.33 percent, −11.19 percent, 22.83 percent, and 13.57 percent for the past four years. What is the standard deviation of the returns?

The basic factors to be evaluated in the credit evaluation process, the five Cs of credit, are:

Which one of the five Cs of credit refers to the general economic situation in the customer’s line of business?

A new project has an initial cost of $255,000. The equipment will be depreciated on a straight-line basis to a zero book value over the five-year life of the project. The projected net income each year is $13,300,$18,100, $20,360, $15,200, and $12,000, respectively. What is the average accounting return?

Variable costs can be defined as the costs that:

If the economy booms, RTF, Incorporated, stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 66 percent while the probability of a recession is 34 percent. What is the variance of the returns on RTF, Incorporated, stock?