Amino Industries common shares sell for $100 per share. Amino expects to set their next annual dividend at $4.00 per share. If Amino expects future dividends to grow at 5 percent per year, indefinitely, the current risk-free rate is 2 percent, the expected rate on the market is 7 percent, and the stock has a beta of 1.5, what should be the best estimate of the firm’s cost of equity, by taking an average of the 2 estimates?
A firm uses only debt and equity in its capital structure. T…
A firm uses only debt and equity in its capital structure. The firm’s weight of equity is 75 percent. The firm’s cost of equity is 16 percent and it has a tax rate of 21 percent. If the firm’s WACC is 13%, what is the firm’s before-tax cost of debt?
Stock A has a required return of 19 percent. Stock B has a r…
Stock A has a required return of 19 percent. Stock B has a required return of 11 percent. Assume a risk-free rate of 4.75 percent. By how much does Stock A’s risk premium exceed the risk premium of Stock B?
Which of the following makes this a true statement: The shap…
Which of the following makes this a true statement: The shape of the efficient frontier implies that
Compute the standard deviation given these four economic sta…
Compute the standard deviation given these four economic states, their likelihoods, and the potential returns.Economic StateProbabilityReturnFast Growth0.3540%Slow Growth0.4510%Recession0.10−10%Depression0.10−100%
Hastings Entertainment has a beta of 1.24. If the market ret…
Hastings Entertainment has a beta of 1.24. If the market return is expected to be 10 percent and the risk-free rate is 4 percent, what is Hastings’ required return?
A patient present in the emergency room with ALOC, weakness…
A patient present in the emergency room with ALOC, weakness and jaundice. The respiratory therapist should check this patient’s:
When assessing for orientation, what should the practitioner…
When assessing for orientation, what should the practitioner ask the patient? I. Can you blink your eyes? II. Do you know your name? III. Do you know where you are? IV. Do you know what month is is?
A patient with pleuritic chest pain and sudden desaturation…
A patient with pleuritic chest pain and sudden desaturation of oxygenation is suspected of a pulmonary emboli. How should this be ruled-out (R/O)?
Which of the following chambers of the pleura-vac is assesse…
Which of the following chambers of the pleura-vac is assessed for an active pneumothorax?