By how much does bradford required return exceed

Assignment Help Finance Basics
Reference no: EM13302501

Bradford Manufacturing Company has a beta of 2.3, while Farley Industries has a beta of 0.40. The required return on an index fund that holds the entire stock market is 11.5%. The risk-free rate of interest is 5.00%. By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.

Reference no: EM13302501

Questions Cloud

What would your portfolio new beta be : The portfolio's beta is 1.10. Now suppose you decided to sell one of the stocks in your portfolio with a beta of 1.0 for $7,500 and to use these proceeds to buy another stock with a beta of 2.24. What would your portfolio's new beta be? Round your..
Contracting a food-borne illness : Describe how the human defends itself after contracting a food-borne illness. Explain using chemistry and cellular responses
Find concentration of silver at chloride concentration raise : The solid silver chloride is placed in water. It reaches equilibrium and has a solubility product constant of 1.8 x 10-10. What is the concentration of silver if the chloride concentration is raised to 3M
What is the force acting upwards on the mast : A boat's mast is held by two cables, one attached to the front of the ship and the other to the back. What is the force acting upwards on the mast exerted by the boat at the bottom of the mast
By how much does bradford required return exceed : By how much does Bradford's required return exceed Farley's required return? Round your answer to two decimal places.
Explain karl marxs economic theory : Karl Marx''s economic theory describe major environmental issues that must be considered when doing business in Trinidad and Tobago.
Theories on soft drink consumption can affect bone health. : Nutrition and medical professionals are concerned about the heavy consumption of soft drinks, as it may be detrimental to bone health. There are several theories associated with soft drink consumption, so please list the theories and provide an expla..
What would the dollar price of the car be : Has the price, in dollars, of the automobile increased or decreased during the 20-year period because of changes in the exchange rate?
Explain the difference between the client and the server : What is the difference between the client and the server. What is the difference between server-side and client-side scritping? Why are they separate

Reviews

Write a Review

Finance Basics Questions & Answers

  What required reserves ratio is implied

If the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied?

  Calculate the present value of the generated cash flows

Calculate the present value of the generated cash flows. (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

  What capital gain will brighton report on this transaction

Brighton depreciates oil rigs straight line over 10 years assuming no salvage value. The rig was just sold to British Petroleum for $25,000,000. What Capital Gain/Loss will Brighton report on this transaction?

  Find the appropriate value

The Family Practice Clinic has long-term debt of 567,000 dollar as of December 31, 2009 determine the equivalent value of long-term debt in 2005.

  What price must german motors charge for the same model

What price must German Motors charge for the same model on January 29, 2013 to realize the same amount of euro ( ) as it did in 2008. ($0.9150/Euro on 1/20/08 and $0.9950/Euros on 1/29/2013)

  What is the average capital gains yield

A stock has paid dividends of $1.80, $1.85, $2.00, $2.20, and $2.25 over the past five years, respectively. What is the average capital gains yield?

  What will the earnings per share be after stock repurchase

Today, the firm is repurchasing $4,800 worth of stock. Ignore taxes. What will the earnings per share be after the stock repurchase?

  Computation of next year stock return

If the returns on large corporation stocks are normally distributed, for which of the following returns can you not state, with 95 percent confidence that next years stock return might be equal to?

  Cumulative voting procedures

The Beasley Corporation has been experiencing declining earning, but has just announced a 50% salary increase for its top executives. A dissident group of stockholders wants to oust the existing board of directors.

  What is the number of payments per year

Dupree funds is considering the fees charged by two banks. First America charges a flat rate of $0.11 per payment and First Western requires a balance of $500,000 (that does not pay interest to Dupree funds).

  Compute the increased retained earnings for 2003

Compute the increased retained earnings for 2003 if the company were to declare a $4.25 common stock dividend. The company has 15,000 shares of common stock outstanding.

  What is mullineauxs wacc

Mullineaux Corporation has a target capital structure of 70 percent common stock, 10 percent preferred stock, and 20 percent debt. Its cost of equity is 12 percent, the cost of preferred stock is 6 percent, and the pretax cost of debt is 8 percent..

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