A home product discount store is considering expanding its capacity to meet a growing demand for its products. The alternatives are to build a new store at a side nearby, ex-pand and refurnish the old store, or do nothing. Economists have projected the regional economic outlook: a 50% probability that the economy will remain unchanged, a 20% probability of an economic upturn, and a 30% probability of an economic downturn. The following estimates of annual returns have been prepared (in millions of dollars): Build new store Expand old store Do nothing Market Downturn Stable Market $(0.8) $(0.4) $(0.1) $0.5 $0.8 $0.2 Market Upturn $2.1 $1.4 $0.5 a. Use a decision tree to analyze these decision alternatives. b. What should the company do based on your decision three analysis

The risk-free rate is 7% and the expected rate of return on the market portfolio is 11%. a. calculate the required rate of return on a security with a beta of 1.92. (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. if the security is expected to return 15%, is it overpriced or underpriced?

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

Monica needs to assess the slide sequence and make quick changes to it. which view should she use in her presentation program? a. outline b. slide show c. slide sorter d. notes page e. handout