You are evaluating the required return of General Motors, and are looking at the various operational and costs risks they face.  Which of the following is an example of a systematic (non-diversifiable) risk?

E(rp) = wa * E(ra) + wb * E(rb) + … + wn * E(rn) R = E(r) – Rf  (Excess return = expected return minus risk free rate)

What is the NPV?

Forecasting risk emphasizes the point that the correctness of any decision to accept or reject a project is highly dependent upon the: 

The market value of Charcoal Corporation’s common stock is $20 million, and the market value of its debt is $5 million. The yield to maturity is 7%.  The beta of the company’s common stock is 1.25, and the market risk premium is 8%.  If the T-bill rate is 5%, what is the company’s weighted average cost of capital? (Assume no taxes.)

What is the operating cash flow each year?

An analysis of what happens to the estimate of net present value when only one variable is changed is called _____ analysis. 

Assume an NPV of -$60,000.  What is the EAC?

Quizzes can be taken how many times in this class? 

When can we take a Quiz or an Exam?