GB550 Quiz Unit 5

1.  Anderson Systems is considering a project that has the following cash flow and WACC data. What is the project’s NPV? Note that if a project’s expected NPV is negative, it should be rejected.

WACC:  9.00%

Year                     0                  1            2          3

Cash flows       -$1,000            $500    $500    $500 (Points : 2)

$265.65

$278.93

$292.88

$307.52

 

2.  Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $1.45; P0 = $22.50; and g = 6.50% (constant). Based on the DCF approach, what is the cost of common from retained earnings? (Points : 2)

11.10%

11.68%

12.30%

12.94%

 

3.  Bosio Inc.’s perpetual preferred stock sells for $97.50 per share and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company’s cost of preferred stock for use in calculating the WACC? (Points : 2)

8.72%

9.08%

9.44%

9.82%

 

4.  A company’s perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm’s cost of preferred stock? (Points : 2)

7.81%

8.22%

8.65%

9.10%

 

5.  O’Brien Inc. has the following data:  rRF = 5.00%; RPM = 6.00%; and b = 1.05. What is the firm’s cost of common from retained earnings based on the CAPM? (Points : 2)

11.30%

11.64%

11.99%

12.35%

 

6.  No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects’ cost of capital exceeds the rate at which the projects’ NPV profiles cross. (Points : 2)

True

False

 

Total 10 Questions..

 

Looking for a Similar Assignment? Order now and Get a Discount! Use Coupon Code “Newclient”

The post GB550 Quiz Unit 5 appeared first on Savvy Essay Writers.

#write essay #research paper #blog writing #article writing #academic writer #reflective paper #essay pro #types of essays #write my essay #reflective essay #paper writer #essay writing service #essay writer free #essay helper #write my paper #assignment writer #write my essay for me #write an essay for me #uk essay #thesis writer #dissertation writing services #writing a research paper #academic essay #dissertation help #easy essay #do my essay #paper writing service #buy essay #essay writing help #essay service #dissertation writing #online essay writer #write my paper for me #types of essay writing #essay writing website #write my essay for free #reflective report #type my essay #thesis writing services #write paper for me #research paper writing service #essay paper #professional essay writers #write my essay online #essay help online #write my research paper #dissertation writing help #websites that write papers for you for free #write my essay for me cheap #pay someone to write my paper #pay someone to write my research paper #Essaywriting #Academicwriting #Assignmenthelp #Nursingassignment #Nursinghomework #Psychologyassignment #Physicsassignment #Philosophyassignment #Religionassignment #History #Writing #writingtips #Students #universityassignment #onlinewriting #savvyessaywriters #onlineprowriters #assignmentcollection #excelsiorwriters #writinghub #study #exclusivewritings #myassignmentgeek #expertwriters #art #transcription #grammer #college #highschool #StudentsHelpingStudents #studentshirt #StudentShoe #StudentShoes #studentshoponline #studentshopping #studentshouse #StudentShoutout #studentshowcase2017 #StudentsHub #studentsieuczy #StudentsIn #studentsinberlin #studentsinbusiness #StudentsInDubai #studentsininternational