nursingstudyhelp.com logo

Our Services

Get 15% Discount on your First Order

Description Q-1 Use the net present value -NPV- method of capital budgeting to evaluate the following project. Should the company accept/reject

Description

Q-1 Use the net present value -NPV- method of capital budgeting to evaluate the following
project. Should the company accept/reject the project? Why?
Initial outlay (cash outflows)
-40000
Cash inflow
Total Debt
Year 1: $20000
Year 2: $15000
Year 3: $6200
$300000
Cost of debt
7%
Total equity
$500000
Cost of
equity
12%
Q-2 Use the information shown in the table
Economic Condition
Weak
Moderate
Good
Outcome
180
260
340
Probability of outcome
.3
.5
.2
1.1 what is the expected value?
1.2 calculate the variance.
1.3 calculate the standard deviation.
1.4 calculate the coefficient of variation.
Q-3 what is Beta? Calculate the Beta for Extra and SADAFCO companies. Explain your answer
carefully? Which company’s stock is riskier?
Q4- use a line graph to show the stock price for SABIC and SADAFCO with the market index “5
years” then describe the graph and what is your conclusion. In the conclusion, give your opinion
about the correlation and how the company move in comparison to the market index? If they move
together why and if they move inconsistently why? Think about the volatility and beta. In addition,
is it good to invest in both companies to diversify?

Purchase answer to see full
attachment

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Follow the instructional steps to finish the project (point values can also be seen using the link

Follow the instructional steps to finish the project (point values can also be seen using the link below). Pinckney_Exp19_PPT_Ch01_Cap_WantToWaffle.pptx Want to Waffle A Great Franchise Opportunity image2.png image3.png image4.png image5.png Exp19_PowerPoint_Ch01_Cap_Want_to_Waffle_Instructions.docx Grader – Instructions PPT 2019 Project Exp19_PowerPoint_Ch01_Cap_Want_to_Waffle Project Description: Want to Waffle is a successful mobile food business. The

Project 2: Design the Cloud Deployment Architecture  Step 10: Write and Submit the Final Cloud Deployment Architecture Plan  In this step, you will

Project 2: Design the Cloud Deployment Architecture  Step 10: Write and Submit the Final Cloud Deployment Architecture Plan  In this step, you will create and submit your consolidated Cloud Deployment Architecture Plan for email, software development, and backups and archiving. The Cloud Deployment Architecture plan, which should be between eight