One share of stock Z is selling for $10. The stock has the following possible payoffs after one year:Slump Normal Boom$8 $12 $16Assume equal probability for each state of the economy.1) Calculate the expected return and the variance for return.2) Suppose the risk free rate is 4%, and that stock Z is on the CML. Calculate the sharpe ratio for Z3) Suppose stock Y has an expected return of 25% and variance of 0.16. Returns for Y and Z have a correlation coefficient of 0.1. Calculate the return and variance for a portfolio with 30% in Y and 70% in Z.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $

Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc

Find the zeros of the polynomial 5 x square + 12 x + 7 by factorization method and verify the relation between zeros and coefficient of the polynomials