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Author Question: Willis has won the 4,700,000 state lottery and intends to save all of the money for his retirement. ... (Read 72 times)

karateprodigy

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Willis has won the 4,700,000 state lottery and intends to save all of the money for his retirement.
 
  He chooses to receive an annual cash flow of 235,000 for twenty years, with the first payment to be received one year from today. How much money will be in his retirement account in twenty years if he can reinvest his money at an annual rate of 6.75?
  A) 9,374,989
  B) 17,356,235
  C) 10,007,801
  D) 4,700,000

Question 2

Humongous Corporation is a multidivisional conglomerate. The Food Division is undergoing a
  capital budgeting analysis and must estimate the division's beta.
 
  This division has a different level
  of systematic risk than is typical for Humongous Corporation as a whole. The most appropriate
  method for estimating this beta is
  A) the regression coefficient from a time series regression of Humongous Corporation stock
  returns on a market index.
  B) the regression coefficient from a time series regression of Food Division's return on assets on a
  market index.
  C) to multiply the company's beta by the ratio of the Food Division's total assets/Humongous
  Corporation total assets.
  D) the regression coefficient from a time series regression of Food Division's net income on the
  Humongous Corporation's return on assets.


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joewallace

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karateprodigy

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


diana chang

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Reply 3 on: Yesterday
Excellent

 

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