By how much does bradford required return

Assignment Help Finance Basics
Reference no: EM13287942

Bradford Manufacturing Company has a beta of 1.9, while Farley Industries has a beta of 0.35. The required return on an index fund that holds the entire stock market is 9.5%. The risk-free rate of interest is 3.25%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

Reference no: EM13287942

Questions Cloud

What would the cost of equity from new stock be : If the company were to issue new stock, it would incur a 14% flotation cost. What would the cost of equity from new stock be? Round your answer to two decimal places.
What is the firm horizon : Hart Enterprises recently paid a dividend, D0, of $4.00. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 14%.
Explain a gas mixture contains each of the gases : A gas mixture contains each of the following gases at the indicated partial pressures: N2, 221 torr; O2, 131 torr; and He, 131 torr.
What happens to the size of the depletion region and why : If the temperature remains constant and the external currentlI increases, what happens to the size of the depletion region Why
By how much does bradford required return : By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.
Public-sector and private-sector organizations : How does strategic planning differ between small businesses and multinational corporations? How is strategic planning different between public-sector and private-sector organizations?
Explain what modification occurs when a small amount : What modification occurs when a small amount of p-divinylbenzene is added to the reaction mixture during the polymerization reaction of styrene to form polystrene
Determine the expected percent profit to the company : In the fall in the northern United States, a manufacturerof snowblowers makes the following advertised offer. If youpurchase a snowblower and then it snows less than 20% of averagethat winter you get a full refund of what you paid (and keep the sn..
What is the yield on this 5-year corporate bond : What is the yield on this 5-year corporate bond? Round your answer to two decimal places.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Us recent gdp results and trends

Recommend a strategy for enhancing U.S. GDP over the next five years. Give support for your recommendation. Predict the federal fund rate over next five years, indicating the likely impact on financial markets. Provide support for your rationale.

  Briefly explain duration model

You have been freshly employed & your line manager is asking you to use duration model in order to assess the interest rate risk related to the loan portfolio.

  Value of the tax benefits from depreciation

The cost of capital is 14 percent, and the firm's tax rate is 40 percent - Estimate the present value of the tax benefits from depreciation

  Cash dividends and stock repurchase

Assume instead of paying the cash dividend, the firm used the $2.4 million of excess funds to purchase shares at slightly over the current market value of $64 at a price of $65.20. How many shares could be repurchased?

  How large must the annual payments

They expect their investment account to earn 9%. How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?

  What will be the current market price of the firm bonds

Assuming semiannual coupon payments, what will be the current market price of the firm's bonds?

  Determine the currency per u.s. dollar

In mid July 2009, the U.S. dollare equivalent of a uro was $1.4116. Using the indirect quotation method, determine the currency per U.S. dollar for each of these dates.

  What was the real risk premium on equities

The market portfolio of common stocks earned 14.7% in one year. Treasury bills earned 5.7%. What was the real risk premium on equities?

  What is the length of the firm operating cycle

Kurt's Enterprises has a receivables turnover rate of 11.8, a payables turnover rate of 12.4, and an inventory turnover rate of 15.6. What is the length of the firm's operating cycle?

  What amount of gain has patriot received from transaction

What amount of gain has Patriot received from this transaction and this a capital or ordinary gain?

  Calculation of cost of common stock shares

Calculation of cost of common stock shares and shares of common stock outstanding and it is presumed the Larsen Co

  What is the market value of the bond

A 10-year bond, with a par value equaling $1,000, pays 7% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis.

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