kindly solve these as soon as possible 5. Consider two stocks with annual...

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kindly solve these as soon as possible

5. Consider two stocks with annual expected returns of E[ru]=10% and E[r2l=14%. An investor with initial wealth 500 invests 30% in stock 1 and the rest in stock 2. What is the expected return of the portfolio? A 12,3% B 13.4% C 13.2% D I do not want to answer this question E 12.8% 8. Which of the following statements is TRUE? A I do not want to answer this question B The internal rate of retur (IRR) of an investment opportunity that requires 100 deposit today and pays 250 at the end of one year from today is 150% The payback period of a project that costs 1000 initially and promises cash inflows of 400 for the next three years is 0.4 years D An increase in the Net Working Capital increases Free Cash Flows to the Firm E If you use the discounted payback period rule to evaluate projects, it is not possible for you to reject a positive-NPV project 2. Suppose you have collected the following data for Example Inc. in order to determine the value of the company. The balance sheet items correspond to values at year- end of 2018 and 2019, while the income statement items correspond to revenues/expenses during the years 2018 and 2019. The tax rate is 20%. All values are in thousands of pounds. 2018 2019 Revenue 4,000 4,100 Cost of Sales 1,600 1,700 Admin Expenses 500 520 Depreciation 500 550 EBIT 1,400 1,330 Interest Expenses 150 150 Inventory 300 350 Accounts Payable 320 370 Accounts Receivable 400 450 Compute the free cash flows to the firm (FCFF) for the year 2019. Assume that no capital expenditure took place during the year: Inventory 300 350 Accounts Payable 320 370 Accounts Receivable 400 450 Compute the free cash flows to the firm (FCFF) for the year 2019. Assume that no capital expenditure took place during the year: A 1,014 1,614 I do not want to answer this question D 1,664 E 1.564

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