Suppose that Tesla has a market Beta of 2.01 . They have a debt to equity valve of34%and a tax rate of25%. The risk free rate is3%and the inarket risk premium is4.1%Suppose that Tesla acquives Fivian and their new debt to equity rato is75%. What is Tesla's new market Beta? A. 1.75 B. 1.84 C. 201 D. 250

Q: identify, analyze and discuss the following characteristics of an American put option: maximum…

A: Derivative products are financial instruments whose value is based on the underlying asset or…

Q: Edwards Construction currently has debt outstanding with a market value of $75,000. The company has…

A: Here, Market Value of Debt is $75,000 WACC is 10% EBIT of Previous year is $8750 Growth Rate is 7%

Q: If you invest 6,800 per year at the end of each year at 10%, how much money will you have at the end…

A: The future value of an ordinary annuity is the value of a series of equal payments made at the end…

Q: You are considering adding a new software title to those published by your highly successful…

A: Opportunity cost refers to the cost of choosing one option over another, based on the potential…

Q: In June 1868, an entrepreneur issued $1000 bonds (to pay for an access road in a city). The bonds…

A: A road project was financed by an entrepreneur via issuance of long term maturity bonds. The bonds…

Q: TD Canada Trust issued a loan of $96,000 at 7.76% compounded semi-annually. The loan was repaid by…

A: the interest rate is semi annual compounded so first rate of interest converted to the  effective…

Q: Thanks to acquisition of a key patent, your company now has exclusive production rights for…

A: NPV (Net present value) is calculated by deducting initial investment from present value of cash…

Q: M a k e   a   r e f l e c t i v e   j o u r n a l   o f   t h e   s a i d   t o p i c s :    F o u n…

A: Today I learned about the basics of financial planning, which include understanding personal…

Q: Carefully draw the payoff diagram of a portfolio consisting of a long position in two call options…

A: A customized portfolio has to be created with long and short positions in call options on the same…

Q: The Platinum Company is a national mattress manufacturer. Its Marion plant will become idle on…

A: Net present value is caclulated by deducting present value of cash outflows from present value of…

Q: why market-specific factors can impact foreign exchange market

A: There are several key factors that influence the foreign exchange markets. These factors can be…

Q: Jiminy's Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 6…

A: Compound = semiannually = 2 Time = nper = (20 - 3) * 2 = 34  Coupon rate = 6 / 2 = 3% Face value =…

Q: ume that depreciation is straight-line to zero over the life of the project. Sales are projected at…

A: NPV is a capital budgeting tool to decide on whether the capital project is beneficial for the…

Q: Nellie wants to buy a $509,000.00 house. She makes a $120,000.00 down payment and takes out a…

A: Formulas for all parts are :   a.) Principal of mortgage = Purchase price  -  Down paymentb.) Total…

Q: Project L requires an initial outlay at t = 0 of $65,000, its expected cash inflows are $14,000 per…

A: Initial Investment = pv = $65,000 Cash flow = cf = $14,000 Time = t = 9 years WACC = r = 10%

Q: nputs for WACC (Re computed using CAPM only) LT Debt: 8000 bonds outstanding of a 5-year maturity;…

A: A company is funded by bonds, preferred equity and the common equity. An excel based financial model…

Q: Sunland Automotive is considering adding state safety inspections to its service offerings. the…

A: Modified internal rate of return (MIRR), which is the discounting rate that converts future cash…

Q: since due to  Q&A guidelines, you must answer the first three sub-parts, could you please answer to…

A: NPV  is defined as the sum of the present values of all future cash inflows  less the sum of the…

Q: Fill in Xs'

A: This involves a balance  sheet analysis and income statement analysis. All the “x”s are blanks that…

Q: Question 4 Consider the following information regarding the performance of a money manager. The…

A: Data given:   (1) Actual Return (2) Actual Weight (3) Benchmark Weight (4) Index Return Equity…

Q: Stevensons bakeries and all equity firm that has a projected perpetual EBIT of $144,000 per year.…

A: EBIT = $144,000 Cost of equity = 10.5% Tax rate = 21% Debt rate = 5.8% Debt-equity ratio = 54%

Q: A project has annual cash flows of $4,000 for the next 10 years and then $5,000 each year for the…

A: Net present value is a method of capital budgeting that can be computed by considering the present…

Q: National Business Machine Company (NBM) has $5.4 million of extra cash after taxes have been paid.…

A: A company has a surplus funds. This can be invested by the company or paid out as special dividends…

Q: Jiminy's Cricket Farm issued a 20-year, 7 percent semiannual coupon bond 5 years ago. The bond…

A: Compound = semiannually = 2 Time = nper = (20 - 5) * 2 = 30 semiannual Coupon rate = 7 / 2 = 3.5%…

Q: You find a bond with 19 years until maturity that has a coupon rate of 8 percent and a yield to…

A: Bond Duration is that period under which duration bond price will be change if and when the interest…

Q: Project S requires an initial outlay at t = 0 of $10,000, and its expected cash flows would be…

A: Net present value-NPV  is defined as the sum of the present values of all future cash inflows  less…

Q: Risk designates any uncertainty that might trigger losses. These risks include all except:

A: Risk in finance refers to the vulnerability with regard to speculation that may have an adverse…

Q: Given the following information on a 20-year fixed-payment loan, determine the remaining balance…

A: The present value of a loan refers to the current value of the future cash flows that will be…

Q: wo tales of behavioral biases: You are a portfolio manager of a prestigious Investment Management…

A: Behavioral biases are cognitive and emotional tendencies that can cause individuals to make…

Q: describe the major differences between futures and forwards.   b)describe delivery and settlement…

A: A derivative is a financial contract whose value is derived from the underlying asset, which could…

Q: 2. Distribution of Stock Prices Consider a stock whose current stock price is $250 and its…

A: d= [Current stock price*(1-volatility of stock)]/ current stock price. =[250*(1-0.20)]/250 = 0.80…

Q: Find the future value, using the future value formula and a calculator. (Round your answer to the…

A: Present Value (PV) = $953 Interest Rate = 5.5% No. of years = 7 Compounded Quarterly = 4 So,…

Q: What is the weighted average cost of capital for Walmart?

A: A company's average after-tax cost of capital from all sources, including common stock, preferred…

Q: Dwight Donovan, the president of Thornton Enterprises, is considering two investment opportunities.…

A: 1. Net present value  (NPV) is computed by deducting initial investment from present value of cash…

Q: Good Time Company is a regional chain department store. It will remain in business for one more…

A: Probability of Boom=50% Probability of recession=50% Projected cash flow during the boom=$126…

Q: The transfer the risk from an insured individual to a group to minimize the possibility of losses is…

A: We take insurance coverage to reduce our risks. For example when we take health insurance coverage…

Q: Dante has a mortgage of $700,000 through the Meridian Bank for a vacation property. The mortgage is…

A: The rate of interest is the amount which is charged by the lender on lending the loan to the…

Q: Elona Zuckerberg is the CFO of Facenote company. made the following statements in a conference call…

A: The CFO of Facenote company, Elona Zuckerberg, made two statements regarding the company's capital…

Q: Fixed or free floating exchange rate in south Africa exploring the best way to go i need answer…

A: The value of the South African rand relative to other currencies is currently determined by the…

Q: How many covariances appear in the variance equation of a six-stock portfolio   15

A: Covariance is a statistical measure that quantifies the degree to which two variables are linearly…

Q: boss, Southern Textiles, has just handed you the estimated cash flows for two proposed projects.…

A: IRR stands for Internal Rate of Return. It is a capital budgeting method used to evaluate the…

Q: Gunnar Corp uses no debt. The weighted average cost of capital is 9 percent. If the current market…

A: Weighted average cost of capital is the weighted average of the costs of different sources of…

Q: Sasha promised to pay $3000 in 2 years and $5000 in five years. If she replaces those payments with…

A: Present value refers to the current worth of the future cash flow streams. It is estimated by…

Q: Insurance policies form the basis of an insurance company’s ________________. a. Financial…

A: Financial securities are an important part of an insurance company's investment portfolio, as they…

Q: Pompeil's Pizza has a delivery car that it uses for pizza deliveries. The transmission needs to be…

A: Net present value shows the difference between the present value of cash inflows and outflows…

Q: A share of stock with a beta of 0.68 currently sells for $43. Investors expect the stock to pay a…

A: The required rate of return on stock is calculated using following equation Required rate of return…

Q: What type of banking risk includes deterioration of the value of the local currency in terms of the…

A: Risk in banking refers to the potential for losses or adverse outcomes resulting from various…

Q: What is  the cost of equity, the cost of preferred stock, and the cost of debt for Walmart?

A: Calculating the cost of capital is an essential part of financial analysis, as it helps companies…

Q: Seth Fitch owns a small retail ice cream parlor. He is considering expanding the business and has…

A: Introduction: Payback period-It represents the time period required for recovery of the initial…

Q: Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5…

A: Invested capital = Divisional assets - Current liabilities + (Research and Development expenditures…