Calculate the required rate of return-real risk-free rate

Assignment Help Financial Management
Reference no: EM13767758

Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.8% rate of inflation in the future. The real risk-free rate is 2.25%, and the market risk premium is 7%. Manning has a beta of 2.5, and its realized rate of return has averaged 13% over the last 5 years. Round your answer to two decimal places.

Reference no: EM13767758

Questions Cloud

What right is being violated : Your grandparents have to move because the city needs their property to build an airport. in return the city has agreed only to pay your grandparents moving expenses whats being violated, What right is being violated
Demographic transition model : You will write a research paper about the demographic transition model and global food production and distribution for a growing human population to meet global food security goals. You must use APA format for the paper and documentation.
Ratio between the length and breadth of a rectangular field : The ratio between the length and breadth of a rectangular field is 11:7. The cost of fencing it is Rs. 75,000. Find the dimensions of the field.
Terms of procedural or distributive justice : What will be the impact of the issues found in the article on the healthcare industry?
Calculate the required rate of return-real risk-free rate : Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.8% rate of inflation in the future. The real risk-free rate is 2.25%, and the market risk premium is 7%. Manning has a beta of 2.5, and its realized rate..
Analysis of the impact of the lgbti community on business : Analysis of the Impact of the LGBTI Community on Business. Recent changes in public policy and social attitudes have caused more awareness around the LGBTI community, as well as more intolerance.
Compensatory damages that barksdale is liable for this case : Haply sues Barksdale for incidental, consequential and compensatory damages. The court finds that there is a breach of contract. What are the consequential, incidental, and compensatory damages that Barksdale is liable for in this case
Compute the arbitrage-free value of this coupon bond : A Treasury coupon bond that pays interest semi-annually has a par value of $1,000, a maturity of 2 years, and a coupon rate of 5.2%. Use the following spot rates to compute the arbitrage-free value of this coupon bond.
Power plants to generate electricity : Discuss why coal in a crushed, granulated, or pulverized form spontaneously combusts? In addition, what health effects are associated with coal dust?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the companys required return

CAPM Required Return A company has a beta of .67. If the market return is expected to be 13.7 percent and the risk-free rate is 5.85 percent, what is the company's required return?

  What was annual percentage increase in the winners check

The winner's prize money was $150. In 2006, the winner's check was $1,225,000. What was the annual percentage increase in the winner's check over this period? If the winner's prize increases at the same rate, what will it be in 2040?

  Calculate the number of shares issued through this IPO

Hughes Technology Corp. recently went public with an initial public offering in which it received a total of $62.15 million in new capital funding. Calculate the number of shares issued through this IPO.

  How much can be accumulated for retirement

How much can be accumulated for retirement if $2,000 is deposited annually, beginning 1 year from today, and the account earns 9% interest compounded annually for 40 years?

  Calculate the amount of the firms gross profit

Evening Story Corporation has sales of $4,732,270; income tax of $558,166; the selling, general and administrative expenses of $264,444; depreciation of $328,532; cost of goods sold of $2,840,400; and interest expense of $153,129. Calculate the amoun..

  calculated using the lump sum PV or FV formula

Twenty years ago, a relative bought you a zero bond that matured at $1000 today. Zeroes pay no periodic interest and is calculated using the lump sum PV or FV formula. The stated interest rate during the 20-year period was 2.32% and inflation average..

  Calculate the two year moving average

In 2010 & 2011 Aldi had sales of $200million. in 2012, sales increased to $275million, in 20013 sales increased to $300 million. Calculate the two year moving average & the four year moving average for 2014.

  Information provided prepare the following operating budgets

Based on the information provided prepare the following operating budgets for 2015: Sales, Production, Direct Material, Direct Labor, Manufacturing Overhead, Ending Inventory, Cost of Goods Sold, Selling, General and Administrative Budgets, and a Bud..

  Calculate the after-tax cost of debt

Calculate the after-tax cost of debt under each of the following conditions: Interest rate of 8%; tax rate of 0%. Round your answer to two decimal places.

  Consider the revenue variance

Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter.

  Eoq a company buys 1 00000 units of material called m every

a company buys 1 00000 units of material called m every month. order costs are rs. 200 per order and carrying costs are

  Assigned change leadership roles and relationships

In "Assigned Change Leadership Roles & Relationships," the sponsor is typically -

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