Potts Industries is a mature company experiencing a constant…

Potts Industries is a mature company experiencing a constant growth rate of 6%.  The firm has just paid a dividend of $1.50 (that is, D0 = $1.50).  Investors require a 9% rate of return on its stock.  What is the firm’s stock price today?  NOTE: Since the $1.50 dividend has already been paid, its value should not be reflected in the firm’s stock price.  

Stocks D and T each have an expected return of 12.5%, a beta…

Stocks D and T each have an expected return of 12.5%, a beta of 1.0, and a standard deviation of 35%.  The risk-free rate of return (rRF) is 5.5%.  Assume that the market is in equilibrium.  The returns on the two stocks have a correlation of 0.75.  Portfolio P has 35% in Stock D and 65% in Stock T.  Which of the following statements is CORRECT?  

Favorite Chocolates & Sweets (FCS) manufactures and distribu…

Favorite Chocolates & Sweets (FCS) manufactures and distributes fine chocolates and candies.  FCS is considering the development of a new line of sugar-free truffles.  FCS’s CFO has collected the following information regarding the proposed project, which is expected to last 3 years: What is the proposed project’s NPV?