CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year forever. However, you recognize that those cash flows are uncertain. (LO12-2) a. Suppose you believe that the beta of the firm is .4. How much is the firm worth if the risk- free rate is 4% and the expected rate of return on the market portfolio is 11%

Shawn received an e-mail offering a great deal on music, movie, and game downloads. he has never heard of the company, and the e-mail address and company name do not match. what should shawn do?

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be:

Consider the following condensed financial statements of money freedom comma inc. the company's target rate of return is 30%: (click the icon to view the comparative balance sheet.) (click the icon to view the income statement.) requirements 1. calculate the company's roi. round all of your answers to four decimal places. 2. calculate the company's profit margin ratio. interpret your results. 3. calculate the company's asset turnover ratio. interpret your results. 4. use the expanded roi formula to confirm your results from requirement 1. interpret your results. 5. calculate the company's ri. interpret your results. requirement 1. calculate the company's roi. round all of your answers to four decimal places. begin by selecting the formula to calculate return on investment (roi), and then enter the amounts to calculate the company's roi. (round your calculations to four decimal places and enter your answer as a percent, x. xx%)