The benchmark price-earnings ratio-cost of common stock

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1. USF Inc. has earnings of $2.35 per share. The benchmark price-earnings (PE) ratio for the company is 18. What stock price would you consider appropriate?

2. The risk-free rate is 3.09%, the market risk premium is 5.29%, and the stock’s beta is 1.13. What is the cost of common stock (Ke)?

3. A portfolio is invested 33.1% in Stock A, 11.4% in Stock B, and the remainder in Stock C. The expected returns are 16%, 24.1%, and 12.3% respectively. What is the portfolio's expected returns?

Reference no: EM131309916

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The benchmark price-earnings ratio-cost of common stock : USF Inc. has earnings of $2.35 per share. The benchmark price-earnings (PE) ratio for the company is 18. What stock price would you consider appropriate? The risk-free rate is 3.09%, the market risk premium is 5.29%, and the stock’s beta is 1.13. Wha..

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