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In 2017, Leonard da Vinci’s painting “Salvator Mundi” was sold for $450,000,000.  Assume that this painting was worth $10 when it was painted 527 years earlier in 1490.  Had the painting been purchased by your relative and passed on to you, what annual return on investment would your family have earned on the painting?

A firm’s _____ tax rate is defined as the tax amount divided by the taxable income.

Cornerstone Industries has a bond outstanding with an 8% coupon rate (APR) and a market price of $870.72. If the bond matures in 6 years and interest is paid semi-annually, what is the YTM (as an APR)?

You have discovered from looking at charts of past stock prices that if you sell just after a stock price has declined for two consecutive weeks, you make money every time in the following week! This is clearly a violation of the _____ of market efficiency.

A firm should try to be as liquid as possible.

Your required return is 15%. Should you accept a project with the following cash flows?                         Year                                 0                1                2                3                         Cash Flow                     -$25           $10            $10            $25

According to the CAPM, what is the expected return on asset A if it has a beta of 1.2, the expected market risk premium is 15%, and the T-bill rate is 1%?

The cash flows of a new project that come at the expense of a firm’s existing projects are:

A project requires an initial investment of $12 million. The target D/E ratio is 1.5. Flotation costs for equity are 10% and flotation costs for debt are 3%. What is the true cost (in dollars) of the project when you consider flotation costs?

An investment earned the following returns for the last four years: –30%, +28%, +15%, and +7%. What is the variance of returns for this investment?