How do I calculate the risk when npv for project a is 3 million project b is 2.5 million

I need to know how to calculate the risks on projects and why is it safe or risky. Please give me some advice on how to work this problem.

Cost of Debt, Cost of Equity, and WACC

If Wild Widgets, Inc., (WWI) were an all-equity firm, it would have a beta of 0.9. WWI has a target debt-to-equity ratio of 0.50. The expected return on the market portfolio is 16%, and Treasury bills currently yield 8% per annum. WWI one-year, $1,000 par value bonds carry a 7% annual coupon and are currently selling for $972 ...continues

Profit (loss) on a new stock issue

Brokers incurred $450,000 out of pocket expenses and will give 21,000,000 of the proceeds to the small firm they are underwriting, price to the public is $7.50 per share with 3 million shares being issued. What is the profit or loss the broker incurs?

Finance Questions

1. An investment costs $3,000 today and provides cash flows at the end of each year for 20 years. The investment's expected return is 10 percent. The projected cash flows for years 1, 2, 3 are $100, $200, and $300 respectively. What is the annual cash flow received for each of the years 4 through 20 (17 years)? (Assume the same ...continues

Finance Question

An investor has $5,000 invested in a stock which has an estimated beta of 1.2, and another $15,000 invested in the stock of the company for which he works. The risk-free rate is 6 percent and the market risk premium is also 6 percent. The investor calculates that the required rate of return on his total ($20,000) portfolio is 15 ...continues

Investment Yield

Suppose it is now Jan. 1, 2007, and you just sold an investment that you own for $12,500. You purchased the investment 4 years ago for $10,500. During the time you held the investment, it paid income equal to $1,000 each year. What is the 4-year holding period yield that you earned on your investment? Please show how you a ...continues

Sarbanes Oxley and the financial and social impacts of unethical behavior

What is the role of a public accounting firm? How has it changed since Sarbanes Oxley became law? What are the financial and social impacts of unethical behavior?

Market structure questions - fill in the blank

1. The four major characteristics of a purely competitive market structure are _________________, __________________________, _______________________, ________________________. 2. The demand curve facing a pure competitor is ____________________ elastic; such a demand curve is (horizontal, vertical)_______________ ...continues

Interrelationship between the four financial statements

1. What is the interrelationship between the four financial statements? 2. Why is it important to make comparisons using ratio analysis? What are the different ways you can make comparisons? 3. Is it possible for a company to have a profit and a negative cash flow? Explain your answer.

Futures- Margin Account; DJIA

1) The worlds most actively traded commodity is crude oil. New York Mercantile Exchange (NYMEX) is the largest market for future oil contracts, both light sweet and brent. Contracts are traded in units of 1000 barrels. Currently, non-member initial margin is $4,725 per contract. The Maintenance requirement is $3,500. Suppose you ...continues