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If the economy is normal, the stock of Flores Corporation is expected to return 12 percent. If the economy falls into a recession, the stock’s return is projected at a negative 3.5 percent. The probability of a normal economy is 76 percent. What is the standard deviation of the returns on this stock?

You are evaluating a project that requires $324,000 in external financing. The flotation cost of equity is 8.4 percent and the flotation cost of debt is 5.1 percent. What is the initial cost of the project including the flotation costs if you maintain a debt-equity ratio of .35?

An investment costs $239,000 and has projected cash flows of $123,900, $78,400, and −$22,300 for Years 1 to 3, respectively. The required rate of return is 15.5 percent. Based solely on the internal rate of return rule, should you accept the project? Why or why not?

Weston’s uses straight-line depreciation to zero over a project’s life. A new project has a fixed asset cost of $2,687,300 and projected annual net income of $95,000, $162,000, $286,000, and $304,000 over Years 1 to 4. What is the average accounting return?

You purchased a stock at a price of $50.93. The stock paid a dividend of $2.03 per share and the stock price at the end of the year is $57.13. What isthe capital gains yield?

One year ago, you purchased a stock at a price of $58.03 per share. Today, you sold your stock at a loss of 18.23 percent. Your capital loss was $12.59 per share. What was the dividend yield on this stock?

You purchased 950 shares of Barrett Golf Corporation stock at a price of $36.19 per share. While you owned the stock,you received dividends totaling$.49 per share. Today, you sold your stock at a price of $39.14 per share. What was your total dollar return on the investment?

Bennett Company has a potential new project that is expected to generate annual revenues of $255,800, with variable costs of $141,200, and fixed costs of $59,200. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $21,000. The annual depreciation is $23,800 and the tax rate is 21 percent. What is the annual operating cash flow?

A project has cash flows of −$35,000, $0, $10,000, and $42,000 for Years 0 to 3, respectively. The required rate of return is 15 percent. Based on the internal rate of return of _____ percent, you should _____ the project.

An investment earned annual returns of 7 percent, −32 percent, 11.5 percent, and 21.4 percent during the past four years. If you wish to know the compound annual rate of growth that the investment experienced, you should determine the ________, which equals ________ percent.