Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 438 Weeks Ago, 3 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 06 May 2017 My Price 5.00

Which projects have a higher expected return

 

SML and WACC. An all-equity firm is considering the following projects:

Project

Beta

Expected Return

W

.70

10%

X

.90

12.5

Y

1.20

14

Z

1.80

21

The T-bill rate is 5 percent, and the expected return on the market is 13 percent.

a. Which projects have a higher expected return than the firm"s 13 percent cost of capital?

h. Which projects should be accepted?

c. Which projects will be incorrectly accepted or rejected if the firm"s overall cost of capital were used as a hurdle rate?

 
 

Answers

Alpha Geek
(8)
Status NEW Posted 06 May 2017 04:05 PM My Price 5.00

-----------

Attachments

file 1494089401-Answer.docx preview (115 words )
S-----------ML -----------and----------- WA-----------CC.----------- An----------- al-----------l-e-----------qui-----------ty -----------fir-----------m i-----------s c-----------ons-----------ide-----------rin-----------g t-----------he -----------fol-----------low-----------ing----------- pr-----------oje-----------cts-----------: -----------Pro-----------jec-----------t B-----------eta----------- Ex-----------pec-----------ted----------- Re-----------tur-----------n -----------W .-----------70 -----------10%----------- X----------- .9-----------0 1-----------2.5----------- Y----------- 1.-----------20 -----------14 ----------- Z -----------1.8-----------0 2-----------1 -----------The----------- T------------bil-----------l r-----------ate----------- is----------- 5 -----------per-----------cen-----------t, -----------and----------- th-----------e e-----------xpe-----------cte-----------d r-----------etu-----------rn -----------on -----------the----------- ma-----------rke-----------t i-----------s 1-----------3 p-----------erc-----------ent-----------. -----------a. -----------Whi-----------ch -----------pro-----------jec-----------ts -----------hav-----------e a----------- hi-----------ghe-----------r e-----------xpe-----------cte-----------d r-----------etu-----------rn -----------tha-----------n t-----------he -----------fir-----------m&q-----------uot-----------;s -----------13 -----------per-----------cen-----------t c-----------ost----------- of----------- ca-----------pit-----------al?----------- h-----------. W-----------hic-----------h p-----------roj-----------ect-----------s s-----------hou-----------ld -----------be -----------acc-----------ept-----------ed?----------- c-----------. W-----------hic-----------h p-----------roj-----------ect-----------s w-----------ill----------- be----------- in-----------cor-----------rec-----------tly----------- ac-----------cep-----------ted----------- or----------- re-----------jec-----------ted----------- if-----------
Not Rated(0)