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A stock had returns of 5 percent, 14 percent, 11 percent, −8 percent, and 6 percent over the past five years. What is the standard deviation of these returns?

Flotation costs for a levered firm should be:

Jenkins Ceiling Fans is analyzing a project with expected sales of 5,700 units, ±5 percent. The expected variable cost per unit is $168 and the expected fixed costs are $424,000. Cost estimates are considered accurate within a ±3 percent range. The depreciation expense is $156,000. The sales price is estimated at $339 per unit, ±5 percent. The tax rate is 21 percent. The company is conducting a sensitivity analysis with fixed costs of $425,000. What is the OCF given this analysis?

Assume a firm’s flotation costs are 7.8 percent of the funding need. Accordingly, when analyzing capital projects, the firm’s managers should:

Which of the following statements are accurate? I. Nondiversifiable risk is measured by beta. II. The risk premium increases as diversifiable risk increases. III. Systematic risk is another name for nondiversifiable risk. IV. Diversifiable risks are market risks you cannot avoid.

Lopez Framing sells its inventory 43.2 days after acquiring it. By prior agreement, it pays its suppliers 48.5 days after taking possession of the inventory. It requires customers to pay by credit card; accordingly, it collects its receivables in 4.2 days. Given this information, what is the length of its operating cycle?

Which one of the following characteristics is most associated with financing type projects?

One year ago, you purchased a stock at a price of $43.20 per share. The stock pays quarterly dividends of $.18 per share. Today, the stock is selling for $45.36 per share. What is your capital gain on this investment?

Gabaldon Group has a stock price of $48.75, a beta of 1.3, and just paid an annual dividend of $1.25 per share. The dividend growth rate is expected to be 6.5 percent per year. What is the estimated cost of equity using the dividend discount model?

You are aware that your neighbor trades stocks based on confidential information he overhears at his workplace. This information is not available to the general public. This neighbor often comments on the profits he earns on these trades. Given this, you would tend to argue that the financial markets are at best _____ form efficient.