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NEW QUESTION: 1
Returns on the market and Company Y's stock during the last 3 years are shown below:
Year Market Company Y
1995 -24% -22%
1996 10 13
1997 22 36
The risk-free rate is 5 percent, and the required return on the market is 11 percent. You are considering a low-risk project whose market beta is 0.5 less than the company's overall corporate beta. You finance only with equity, all of which comes from retained earnings. The project has a cost of $500 million, and it is expected to provide cash flows of $100 million per year at the end of Years 1 through 5 and then $50 million per year at the end of Years 6 through 10. What is the project's NPV (in millions of dollars)?
A. $15.75
B. $12.10
C. $7.10
D. $9.26
E. $10.42
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Step 1 Run a regression to find the corporate beta. Market returns are the X-input values, while Y's returns are the Y-input values. Beta is 1.2102.
Step 2 Find the project's estimated beta by subtracting 0.5 from the corporate beta. The project beta is thus 1.2102 - 0.5 = 0.7102.
Step 3 Find the company's cost of equity, which is its WACC because it uses no debt: k(s) = WACC = 5%
+ (11% - 5%)0.7102 = 9.26%.
Step 4 Now find the project's NPV (inputs are in millions):
CF(0) = -500
CF(1-5) = 100
CF(6-10) = 50
I = 9.26%
Solve for NPV = $10.42 million.
NEW QUESTION: 2
Which level of planning concentrates on the future of the product and its ultimate goal with the possible changes to them and their likelihood?
A. Product Roadmap Planning
B. Iteration Planning
C. Product Vision Planning
D. Release Planning
Answer: C
NEW QUESTION: 3
Azure Service Busがあります。
メッセージの先入れ先出し（FIFO）配信を保証するService Busキューを実装する必要があります。
あなたは何をするべきか？
A. [ロック期間]設定を10秒に設定します。
B. パーティションを有効にします。
C. 重複検出を有効にします。
D. キューの最大サイズ設定を5 GBに設定します。
E. セッションを有効にします。
Answer: E
Explanation:
メッセージングセッションを使用することで、メッセージの順序、つまりメッセージの先入れ先出し（FIFO）配信を保証できます。
参照：
https://docs.microsoft.com/en-us/azure/service-bus-messaging/service-bus-azure-and-service- bus-queues-compared-contrasted
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