Capital asset pricing model

Assignment Help Financial Management
Reference no: EM13721589

(Capital Asset Pricing Model) CSB, Inc. has a beta of 0.765. If the expected market return is 10.5 percent and the risk-free rate is 3.5 percent, what is the appropriate expected return of CSB ( using the CAPM)? The appropriate expected return of CSB is __%

Reference no: EM13721589

Questions Cloud

What are the proceeds of the issue for each company : Company XYZ enters into firm commitment underwriting agreement with Company ABC to issue 4200 of bonds with a 1,000 face value. Company ABC agrees to buy the bonds for $620 each and sells 84% of the issue in the market for $831 per bond. What are the..
What are the estimated dividend yield-capital gains yield : What are the estimated dividend yield, capital gains yield, and total return for 2014, 2015, 2016, 2017, and 2018? Why do the dividend yield and capital gains yield change every year? What do you notice about the total return?
How might credit card companies keep their cardholders : How might credit card companies keep their cardholders in debt for a long time? What payment do the credit card companies expect your friend to make so that he never pays down the debt?
Company that receives money in advance of performing service : A company that receives money in advance of performing a service
Capital asset pricing model : (Capital Asset Pricing Model) CSB, Inc. has a beta of 0.765. If the expected market return is 10.5 percent and the risk-free rate is 3.5 percent, what is the appropriate expected return of CSB ( using the CAPM)? The appropriate expected return of CSB..
Earnings before interest and taxes and net income decrease : (Leverage and EPS) You have developed the following proforma income statement for your corporation: Sales $45832000 Variable costs (22756000) Revenue before fixed costs $23076000 Fixed costs (9105000) EBIT $13971000 Interest expense (1317000) Earning..
Describing a firms capital structure : (Describing a firm’s capital structure) Lowe’s Companies, Inc. (LOW) and its subsidiaries operate as a home improvement retailer in the United States and Canada. As of February 1, 2008, it operated 1,534 stores in 50 states and Canada. The company’s ..
Weighted average cost of capital : (Weighted average cost of capital) As a consultant to GBH Skiwear, you have been asked to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. You have determined the market value of the firm’s c..
Calculate component weights of capital : To finance the purchase, GBH will sell 20-year bonds with a $1000 par value paying 7.9 percent per year (paid semi annually) at the market price of $928. Preferred stock paying a $2.55 dividend can be sold for $34.76. Common stock for GBH is currentl..

Reviews

Write a Review

Financial Management Questions & Answers

  Draw policy conclusions from the barings case

Have global financial markets become safer or riskier thanks to the presence of derivative instruments? Elaborate your argument using financial and economic analysis

  The primary financial goal of a for-profit corporation is

the primary financial goal of a for-profit corporation is to make a profit to maximize shareholder wealth.choosing any

  Explain firm''s required rate of return for projects

This planned expansion of the company's present activities would require an investment of $800,000 in equipment having an estimated service life of six years. He has estimated that the equipment could be sold for $40,000 at the beginning of the se..

  How economic conditions affect the default risk premium

Do you think the default risk premium will likely increase or decrease during the next 6 months? How do you think the yield curve will change during this time? Offer some logic or current reference(s) to support your answers.

  Analysis of investment dear sir madam can you please

dear sir madam ltbrgt ltbrgtcan you please provide me the attached solution plagiarism free. looking forward to hear

  In the mid-eighties the toro company launched a promotion

in the mid-eighties the toro company launched a promotion in which snow blower purchasers could refund a portion of

  Describe statistical data on participation rates

Describe statistical data on participation rates, education and employment and income levels of individuals with disabilities

  Stock analysis - calculate the required rate of return

The purpose of this project is to familiarize you with the stock market - calculate the required rate of return on your stock using CAPM:BAD 350- Managerial Finance

  Determine the proposed projects internal rate of return

Determine the proposed project's internal rate of return.

  What is the expected return of each asset

What is the expected return of each asset and what is the variance of each asset?

  In 1895 the first us open golf championship was held the

in 1895 the first u.s. open golf championship was held. the winners prize money was 150. in 2006 the winners check was

  Calculate the financial ratios show your calculations for

find a publicly-traded company on yahooreg finance by entering the company name in the search bar. some examples

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