What is the expected return of investing in company a

Assignment Help Finance Basics
Reference no: EM13808390

1. Company A has a beta of 2.77. Company B has a beta of .73. Company C has a beta of .90. The risk free rate is 6% and the market risk premium is 4%. What is the expected return of investing in Company A?

2. Your stock portfolio consists of only two stocks. You have $115,000 in Company A and $125,000 in Company B. Company A has an actual return of -8% and Company B has a return of 12%. What is the return on your portfolio? Show your work. 

3. A company has a capital structure of 40% debt and 60% equity. The YTM on the company's bonds is 9%, and the company's effective tax rate is 40%.  The cost of equity is 13%. What is the company's WACC? Show your work. 

 

 

Reference no: EM13808390

Jones soda estimates that its required return on stock

Jones Soda estimates that its required return on stock is 11.00 percent and the yield to maturity on its debt is 5.00 percent. The company's equity-to-asset ratio is 0.70 and

Annual rate of return

You purchased 200 shares for XYZ Company stock 10 years ago for $56 a share. The stock paid no dividends but now could be sold for $85 a share. Which of the following is c

Draw and refer to graphs of supply and demand curves

If the countries allow free trade in raisins, explain why $3.50 per kilogram cannot be the free-trade equilibrium world price for raisins. In your answer, draw and refer to

Constant-growth ddm model

GenGym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5% per year infinitely.  (a) What price should the stock sel

Compute the market value of the bonds

Sincere Stationery Corporation needs to raise $500,000 to improve its manufacturing plant. It has decided to issue a $1,000 par value bond with a 14 percent annual coupon ra

Use multisim and construct the circuit shown

Use Multisim and construct the circuit shown in Figure 1 below.  Measure VB, IE and VC. Check your input signal with the oscilloscope to make sure you have correct

Use deriva gem to calculate the value

Format requirement: Please submit your assignment in PDF or WORD format online. The whole assignment must not exceed 10 pages in length, with 1.5 line spacing, 12-point Times

Ethics in business implies

Suppose that you are the CFO of a firm contemplating a stock repurchase next quarter. You know that there are many methods of decreasing the current quarterly earnings,

Reviews

Write a Review

 
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