1. Why do firms set upper and lower limits on their cash balance? What factors affect...

1. Why do firms set upper and lower limits on their cash balance? What factors affect these limits?

2. How is WACC different from the expected rate of return calculated using CAPM?

3. Firm A and Firm B have the same betas but Firm A has a much higher total risk (standard deviation of returns) than the Firm B. The dividends and dividend growth rates for both firms are the same. Do we expect Firm A’s price to be greater or less than Firm B’s price?

4. What is the relationship between the expected rate of return and the rate used to discount cash flows? Re-write the formula for stock price P=D/(r-g) to provide an expression for the expected rate of return.

5. Is it true that if a stock possesses a higher expected rate of return then it must be a better investment?

Expert Solution

jeff jeffy answered 4 months ago

The upper and lower control limits on control charts are usually set at a distance of...

The upper and lower control limits on control charts are usually set at a distance of +/- three times the standard deviation from the center line of the control chart. Use independent research to find the reasons why. Make sure you use the concept of type I and type II error in your discussion. Under what circumstances might a manager consider the use of limits at two times the standard deviation. What should the manager keep in mind when setting...

the midpoint of a class is the sum of its lower and upper limits divided by...

the midpoint of a class is the sum of its lower and upper limits divided by two

Compute the upper and lower control limits if samples of size 4 are to be used....

Compute the upper and lower control limits if samples of size 4 are to be used. UCL= LCL= Compute the upper and lower control limits if samples of size 8 are to be used. (Round your answers to three decimal places.) UCL= LCL= Compute the upper and lower control limits if samples of size 16 are to be used. UCL= LCL=

Which of the following statements about the upper and lower control limits of a control chart...

Which of the following statements about the upper and lower control limits of a control chart is true? Group of answer choices The upper and lower control limits for a p chart depend on the sample size. The lower control limit of a p chart will ALWAYS be a negative value. The upper control limit of an X-bar chart does NOT depend on the average range R-bar. The upper and lower control limits of an R chart are always the...

Statistical process control charts: A. display upper and lower limits for process variables or attributes and...

Statistical process control charts: A. display upper and lower limits for process variables or attributes and signal when a process is no longer in control. B. display the measurements on every item being produced. C. are a graphic way of classifying problems by their level of importance, often referred to as the 80-20 rule. D. indicate to the process operator the average outgoing quality of each lot. E. indicate to the operator the true quality of material leaving the process.

Identify the lower class limits, upper class limits, class width, class midpoints, and class boundaries for the given frequency distribution.

Identify the lower class limits, upper class limits, class width, class midpoints, and class boundaries for the given frequency distribution. Also identify the number of individuals included in the summary. Identify the lower class limits. Identify the upper class limits.Identify the class width.Identify the class midpoints.

List three factors that set limits to population increase.

why do upper regions of an upright lung have a larger ventilation-perfusion ratio and why lower...

why do upper regions of an upright lung have a larger ventilation-perfusion ratio and why lower regions of an upright lung have a smaller ventilation-perfusion ratio

how do different environments or external factors affect both firms and consumers ?

The lower flammability limit (LFL) and upper flammability limit (UFL) are important safety limits which describe...

The lower flammability limit (LFL) and upper flammability limit (UFL) are important safety limits which describe the minimum and maximum volume fraction in air, respectively, that a flammable substance can burn if ignited. If the range of concentration of benzene in air in which ignition could take place is 1.4 - 8.0 vol%, what would be the corresponding temperatures for air saturated with benzene in the vapour space of a storage tank assuming a total pressure in the vapour space...

Question