What is lauryns asset beta

Assignment Help Financial Management
Reference no: EM13724917

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.8, a debt-to-equity ratio of 0.3, and a tax rate of 30 percent. Based on this information, what is Lauryn’s asset beta? (Round your answer to 2 decimal places) Show all work.

Reference no: EM13724917

Questions Cloud

Calculate the stocks coefficient of variation : One way to calculate a stock's beta is to- calculate the stock's coefficient of variation. calculate both the stock's mean return and the std.dev. of the returns.
What are the optimal portfolios for the two investors : The expected return on the S&P 500 index is 12%. The return on the T-bill is 5%. The standard deviation of return on the S&P 500 index is 18%. Investors can form portfolios from these 2 securities. Suppose investors have a utility function of the fol..
What must be his coefficient of risk aversion : Suppose we are told that an investor invests optimally and that he puts 20% in the Market portfolio and 80% in the Risk Free Portfolio. What must be his coefficient of risk aversion?
Expected return standard deviation russell fund : Expected Return Standard Deviation Russell Fund 16% 12% Windsor Fund 14% 10% S&P Fund 12% 8% The correlation between the returns on the Russell Fund and the S&P Fund is .7. The rate on T-bills is 6%. Which of the following portfolios would you prefer..
What is lauryns asset beta : You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.8, a debt-to-equity ratio of 0.3, and a tax rate of 30 percent. Based on this information, what is La..
Suppose a zero growth stock is expected to pay : Suppose a zero growth stock is expected to pay a $0.5 dividend every quarter and the required return is 5% with quarterly compounding. What is the price?
A firm just paid their annual dividend : A firm just paid their annual dividend of $2.0 a share. They recently announced that all future dividends will be increased by 5% annually. What is one share of this stock worth to you if you require a 15% rate of return?
What is the estimated value of this stock today : A company is expected to pay their first annual dividend 2 years from now. That payment will be $1.50 a share. Starting in Year 3, the company will increase the dividend by 5% per year. The required return from common shareholders is 15%. What is the..
What is the present value of growth opportunities : A company plan to pay a dividend of $5 per share. The growth rate is 7 percent and the discount rate is 12 percent. What is the present value of growth opportunities?

Reviews

Write a Review

 

Financial Management Questions & Answers

  What rate of return would she have earned for the past year

Last year, Joan purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.9%. If Joan sold the bond today for $1,033.23, what rate of ret..

  Discuss some ideas for a hypothetical e-commerce

discuss some ideas for a hypothetical e-commerce business.write a 450 paper in which you explain the process your team

  What is the present value of this security

You own a security that provides an annual dividend of $135 forever. The security’s annual return is 5%. What is the present value of this security? Round your answer to the nearest cent.

  Explain the company wishes to know the market value

An oil company has paid $100,000 for the right to pump oil on a plot of land during the next three years. A well has already been sunk and all other necessary facilities are in place. The land has known reserves of 60,000 barrels. The company wish..

  Calculate the expected rate on year treasury bond

The Wall Street Journal reports that the current rate on 5-year Treasury bonds is 2.45 percent and on 10-year Treasury bonds is 4.55 percent. Assume that the maturity risk premium is zero. Calculate the expected rate on a 5-year Treasury bond purchas..

  Question 11 agency problems are said to be intrinsic in the

question 11 agency problems are said to be intrinsic in the corporate form of an association. why do you think this is

  Company manpower group incticker symbol man united

company manpower group incticker symbol man united statesmake an assessment of where your company stands right now what

  Calculate payback period and internal rate of return (irr)

Company has an opportunity to make an investment with the estimated after tax cash flows

  Describe pay for a machine that results in profits

How much more would you be willing to pay for a machine that results in profits of $300 per month and lasts for 10 years as compared to the one that lasts for 5 years only? Assume that your weighted average cost of capital is 24%

  How does using more debt in capital structure

If a company's cost of capital is too high, how does using more debt in their capital structure instead of equity reduce that cost? What are the disadvantages of using too much debt

  Cumulative nonvoting preferred stock

what if in L receives $220 worth of P non-voting preferred stock (rather than P bonds) in exchange for his T bonds?

  What effect the free trade agreement of the americas

Does any currency exchange rate risk exist and what is a tariff? How is it implemented and collected?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd