Unlevered beta Samenvattingen, Aantekeningen en Examens

CFA Level 1 Formulas Exams 245 Questions with Answers Price change based on convexity - CORRECT ANSWER -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration - CORRECT ANSWER Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)] Modified Duration - CORRECT ANSWER [(v-)-(v+)]/[2V0(change in yield)] Future Value - CORRECT ANSWER PV(1+(I/Y)^N) PV - CORRECT ANSWER FV/(1+r)^n PV of perpetuity - CORRECT ANSWER PMT / discount rate Ap...

Leverage Ratio - ANSWER total debt/normalized EBITDA Interest Coverage - ANSWER normalized operating income/interest expense Debt to Market Capital - ANSWER total debt/(total debt+market cap) Unlevered Beta - ANSWER Beta/(1+(1-tax rate)*(debt/market rate) Re-levering beta - ANSWER unlevered beta*(1+(1-tax rate)*(debt/market cap) PV Factor - ANSWER 1/(1+WACC)^half year convention Debt of post-acquisition company - ANSWER last year debt+value of new company (after prem)*% debt us...

The cost of equity is equal to the: expected market return. rate of return required by stockholders. cost of retained earnings plus dividends. B is correct. The cost of equity is defined as the rate of return required by stockholders. Which of the following statements is correct? The appropriate tax rate to use in the adjustment of the before-tax cost of debt to determine the after-tax cost of debt is the average tax rate because interest is deductible against the company's entire ta...

FIN 534- WEEK 11 FINANCIAL MANAGEMENT FINAL EXAM WITH COMPLETE SOLUTION GRADED A • Question 1 4 out of 4 points Which of the following statements is most correct, holding other things constant, for XYZ Corporation's traded call options? • Question 2 4 out of 4 points Other things held constant, the value of an option depends on the stock's price, the risk-free rate, and the • Question 3 4 out of 4 points Which of the following statements is CORRE...

FIN 534- WEEK 11 FINANCIAL MANAGEMENT FINAL EXAM WITH COMPLETE SOLUTION QUESTIONS AND ANSWERS • Question 1 4 out of 4 points Which of the following statements is most correct, holding other things constant, for XYZ Corporation's traded call options? • Question 2 4 out of 4 points Other things held constant, the value of an option depends on the stock's price, the risk-free rate, and the • Question 3 4 out of 4 points Which of the following statement...

FIN 515 Week 5 Homework Problem Set: Chapter 10 (pages 345–348), Chapter 11 (pages 390–396), Chapter 12 (page 431) (latest 2022/2023) Answer the following questions and solve the following problems in the space provided. Chapter 10 (pages 345–348): 4. You bought a stock one year ago for $50 per share and sold it today for $55 per share. It paid a $1 per share dividend today. a. What was your realized return? b. How much of the return came from dividend yield and how much came from...

Question Question 1 The interest tax shield is a key reason why: A. the required rate of return on assets rises when debt is added to the capital structure. B. the value of an unlevered firm is equal to the value of a levered firm. C. the net cost of debt to a firm is generally less than the cost of equity. D. the cost of debt is equal to the cost of equity for a levered firm. E. firms prefer equity financing over debt financing. 4 points Save Answer Question 2 Rosita's has a cost of equity of ...

Question Question 1 The interest tax shield is a key reason why: A. the required rate of return on assets rises when debt is added to the capital structure. B. the value of an unlevered firm is equal to the value of a levered firm. C. the net cost of debt to a firm is generally less than the cost of equity. D. the cost of debt is equal to the cost of equity for a levered firm. E. firms prefer equity financing over debt financing. 4 points Save Answer Question 2 Rosita's has a cost of equity of ...

Question Question 1 The interest tax shield is a key reason why: A. the required rate of return on assets rises when debt is added to the capital structure. B. the value of an unlevered firm is equal to the value of a levered firm. C. the net cost of debt to a firm is generally less than the cost of equity. D. the cost of debt is equal to the cost of equity for a levered firm. E. firms prefer equity financing over debt financing. 4 points Save Answer Question 2 Rosita's has a cost of equity of...

example of firm valuation