Explain the expected rate of return, Operation Management

Assignment Help:

Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the expected interest rate (cost of debt)?

Internal common stock: Jones Industries has a beta of 1.39. The risk-free rate as measured by the rate on short-term US Treasury bill is 3 percent, and the expected return on the overall market is 12 percent. Determine the expected rate of return on Jones's stock (cost of equity). Here are the details:

Jones Total Assets	$2,000,000
Long- & short-term debt	$600,000
Common internal stock equity	$400,000
New common stock equity	$1,000,000
Total liabilities & equity	$2,000,000

Related Discussions:- Explain the expected rate of return

Explain what is the status of the internet contract, Beth advertised her 20...

Beth advertised her 2005 Corvette for sale on the Internet. In her advertisement, she falsely stated that the vehicle had only been driven 60,000 miles when in fact it had been dri

Organizational goals, outline major benefits of organizational goals and d...

outline major benefits of organizational goals and describe the situation in which have observe the benefiys

Explain mcdonald''s prospects of success against competitor, Choose at leas...

Choose at least one of McDonald's competitors and discuss its position relative to McDonald's. Comment on McDonald's prospects of success against this competitor.

Devise a regression equation and predict the profitability, Consider the ta...

Consider the table below. This time, the historical profitability of eight locations is listed in the table. Devise a regression equation and predict the profitability of a new sit

Explain interpret the meaning of the p-value in this problem, Initially, th...

Initially, the mean turnaround time for a stress test was 68 hours. After incorporating changes into the stress-test process, the quality improvement team collected a sample of 50

Explain important to the project success, As a project manager was primaril...

As a project manager was primarily to make sure that project is done on schedule and under budget. Although these functions are very important, BRIEFLY mentioned what other functio

Describe the terms entity and relationship, Explain the terms entity, relat...

Explain the terms entity, relationship, and attributes. Describe how they are used in a database.

Explain steps in the supply process, Examine the steps of the supply proces...

Examine the steps of the supply process in Chapter 4 of the text and identify a project where improvements could be made in one or more of the steps. Would the project have been mo

Define the term economic order quantity, Define the term Economic Order Qua...

Define the term Economic Order Quantity. Economic Order Quantity (EOQ): A mathematical computation for a fixed quantity of inventory ordered every time which would minimi

Explain strategic decision support, Strategic decision support Alignment...

Strategic decision support Alignment of information technology and management goals in healthcare is essential. This alignment assumes that information technology experts be abl

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages