# If the beta of exxon mobil is 0.65, risk-free rate is 4% and the

If the beta of exxon mobil is 0.65, risk-free rate is 4% and the

Question #1

If the beta of Exxon Mobil is 0.65, risk-free rate is 4% and the market rate of return is 14%, calculate the expected rate of return for Exxon.

Question #2
Given the following data for the a stock: risk-free rate = 5%; beta (market) = 1.5; beta (size) = 0.3; beta (book-to-market) = 1.1; market risk premium = 7%; size risk premium = 3.7%; and book-to-market risk premium = 5.2%. Calculate the expected return on the stock using the Fama-French three-factor model.

Question #3
Johnson Paint stock has an expected return of 19% with a beta of 1.7, while Williamson Tire stock has an expected return of 14% with a beta of 1.2. Assume the CAMP is true.

(a). What is the expected return on the market?
(b). What is the risk-free rate?
(c). What is the market risk premium?

Question #4

The market value of Charcoal Corporation’s common stock is \$20 million, and the market value of its risk-free debt is \$5 million. The beta of the company’s common stock is 1.25, and the market return (Km) is 13%. If the Treasury bill rate (Rf) is 5%, what is the company’s cost of capital? (Assume no taxes.)

Question #5
A project has an expected risky cash flow of \$300, in year 3. The risk-free rate is 5%, the market risk premium is 8% and the project’s beta is 1.25. Calculate the certainty equivalent cash flow for year 3.

Question #6

The equity accounts of Bio-Tech Company is as follows:

Suppose the firm sells 2,000,000 new (additional) shares at a price of \$19 per share. What is the new value of Common Shares account? What is the new value of the additional paid-in-capital account?

Question #7

Given the following data for U&P Company: Debt (D) = \$100 million; Equity (E) = \$300 Million; rD = 6%; rE = 12% and TC = 30%. Calculate the after-tax weighted average cost of capital (WACC):

Question #8

Learn and Earn Company is financed entirely by Common stock that is priced to offer a 20% expected return. If the company repurchases 50% of the stock and substitutes an equal value of debt yielding 8%, what is the expected return on the common stock after refinancing?

Question #9

Consider two firms, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm, with 1 million shares outstanding that trade for a price of \$24 per share. With has 2 million shares outstanding and \$12 million dollars in debt at an interest rate of 5%. According to MM Proposition 1, what is the stock price for With?

Question #10

Consider a one-year, \$1000, zero-coupon bond issued. Assume that the bond payoffs are uncertain. There is a 50% chance that the bond will repay its face value in full and a 50% chance that the bond will default and you will receive \$900. Thus, you would expect to receive \$950. Because of the uncertainty, the discount rate is 5.9%. Calculate the promised yield on the bond.

## Calculate the price of your order

Select your paper details and see how much our professional writing services will cost.

We`ll send you the first draft for approval by at
Price: \$36
• Freebies
• Format
• Formatting (MLA, APA, Chicago, custom, etc.)
• Title page & bibliography
• Amendments to your paper when they are needed
• 275 word/double-spaced page
• 12 point Arial/Times New Roman
• Double, single, and custom spacing

Our custom human-written papers from top essay writers are always free from plagiarism.

Your data and payment info stay secured every time you get our help from an essay writer.

Your money is safe with us. If your plans change, you can get it sent back to your card.

## How it works

1. 1
You give us the details
Complete a brief order form to tell us what kind of paper you need.
2. 2
We find you a top writer
One of the best experts in your discipline starts working on your essay.
3. 3
You get the paper done

## Samples from our advanced writers

Check out some essay pieces from our best essay writers before your place an order. They will help you better understand what our service can do for you.

## Perks of our essay writing service

We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.

• Swift delivery
Our writing service can deliver your short and urgent papers in just 4 hours!
• Professional touch
We find you a pro writer who knows all the ins and outs of your subject.
• Easy order placing/tracking
Create a new order and check on its progress at any time in your dashboard.
• Help with any kind of paper
Need a PhD thesis, research project, or a two-page essay? For you, we can do it all.
• Experts in 80+ subjects