A stock has an expected return of 11.89 percent and its reward-to-risk ratio is 7.4 percent. If the risk-free rate is 3 percent, what is the stock’s beta?

Montez Supply is expected to pay an annual dividend of $.95 per share next year. The market price of the stock is $43.50 and the growth rate is 4.5 percent. What is the cost of equity?

The bid price is the:

A stock has an expected return of 10.65 percent. Based on the following information, what is the stock’s return in a boom state of the economy? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .28 −10.6% Normal .31 12.1% Boom .41 ?

A project that has a projected IRR of negative 100 percent will also have a(n):

Efficient financial markets fluctuate continuously because:

Velasquez Manufacturing has two vastly different lines of business: Alpha and Omega. The Alpha line is the riskiest of the two, and accounts for 72 percent of the firm’s sales. When deciding which project proposals should be accepted, the managers should:

Esther, the sales manager for Reynoso Products, wants to sponsor a one-week “Customer Appreciation Sale” during which the firm will sell additional units of a product at the lowest price possible without negatively affecting the firm’s profits. Which one of the following represents the price that should be charged for the additional units during this sale?

Which of the following statements regarding a firm’s pretax cost of debt is accurate?

You can make a one-time sale if you will grant a new customer 30 days to pay. This customer wants to purchase an item with a sales price of $499 and a variable cost of $287. You estimate the probability of default at 33 percent. The monthly interest rate is .98 percent. Should you grant credit to this customer? Why or why not?