An investment earned the following returns for the last four years: –30%, 40%, 15%, and 7%. What is the variance of the returns for this investment?

A project requires an initial investment of $12 million. The target D/E ratio is 1.5. Flotation costs for equity are 10% and flotation costs for debt are 3%. What is the true cost (in dollars) of the project when you consider flotation costs?

The proposition that a firm should borrow as much as possible because the value of a leveraged firm is greater than the value of an unleveraged firm by the present value of the interest tax shield is called the:

If you can consistently make abnormal profits using publicly available information, this would indicate that the semi-strong form of market efficiency holds.

According to the Personal Finance lecture, you know you are financially free when

The financial freedom formula shown in the Personal Finance lecture indicates that

Suppose that your firm has a cost of equity of 18% and a cost of debt of 7%. If the target debt/equity ratio is 0.60, and the tax rate is 30%, what is the firm’s weighted average cost of capital (WACC) (note: do not round your intermediate calculations)?

What is the market value of a bond that will pay a total of ten semi-annual coupon payments of $70 each over the remainder of its life? Assume the bond has a $1,000 face value and a 6% yield to maturity (APR).

You have discovered from looking at charts of past stock prices that if you buy just after a stock price has declined for three consecutive days, you make money the next day every time! This is clearly a violation of the _____ of market efficiency.

According to the CAPM, what is the expected return on asset A if it has a beta of 1.2, the expected market return is 15%, and the T-bill rate is 1%?