Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $10.70 and the large kites would be $23.70. The variable cost per unit is $5.15 and $11.30, respectively. Jill, the owner, feels that she can sell 2,700 of the small kites and 1,730 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,000. The tax rate is 21 percent. What is the annual operating cash flow?

What is the beta of a portfolio comprised of the following securities? Stock Amount Invested Security Beta A $ 4,100 1.46 B $ 5,100 1.57 C $ 7,600 1.00

Seeing Red has a new project that will require fixed assets of $905,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company has a tax rate of 21 percent. What is the depreciation tax shield for Year 3?

The average annual return on small-company stocks was about _____ percentage points greater than the average annual return on large-company stocks over the period 1926–2019.

For the period 1926–2019, the average risk premium on large-company stocks was about:

A portfolio consists of $14,800 in Stock M and $22,400 invested in Stock N. The expected return on these stocks is 8.70 percent and 12.30 percent, respectively. What is the expected return on the portfolio?

Which one of the following will increase a bid price?

A cumulative cash deficit indicates a company:

POD has a project with the following cash flows: Year Cash Flows 0 −$ 251,000 1 147,000 2 164,500 3 129,600 The required return is 8.3 percent. What is the profitability index for this project?

Honor Computing just purchased new equipment that cost $213,000. The equipment is classified as MACRS five-year property. The MACRS rates are .2, .32, and .192 for Years 1 to 3, respectively. What is the proper methodology for computing the depreciation expense for Year 2 assuming the firm opts to forego any bonus depreciation?