New required rate of return

Assignment Help Financial Management
Reference no: EM131010503

Suppose rRF = 3%, rM = 9%, and rA = 15%. Calculate Stock A's beta. Round your answer to two decimal places. If Stock A's beta were 2.0, then what would be A's new required rate of return? Round your answer to two decimal places. %

Reference no: EM131010503

Questions Cloud

Calculate the projects annual project free cash flows : In the spring of 2015, Jemison Electric was considering an investment in a new distribution center. Assuming the firm faces a 30% tax rate, calculate the project’s annual project free cash flows (FCFs) for each of the next five years where the salvag..
What are the dimensions of your garden : You want to spend $400 and enclose as much area as possible. What are the dimensions of your garden, and what area does it enclose?
What is the average height of the building : A building has a rectangular base with opposite corners at (1,5) and (3,7). The roof is the graph of f(x,y)=x cos(y)+x+1 . What is the volume of the building and what is the average height of the building?
Find the total distance traveled if bugs speed is changed : Determine distance the bug travels from the time it leaves the center until it recheas the edge. Find total distance traveled if bugs speed is changed to 4inches/second. What effect does this have on the total distance traveled.
New required rate of return : Suppose rRF = 3%, rM = 9%, and rA = 15%. Calculate Stock A's beta. Round your answer to two decimal places. If Stock A's beta were 2.0, then what would be A's new required rate of return? Round your answer to two decimal places. %
Riskier stock exceed that on the less risky stock : Stock R has a beta of 1.1, Stock S has a beta of 0.30, the expected rate of return on an average stock is 12%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exc..
Charge of staff training and development : 1.You are in charge of staff training and development with your company. There is a new software program that every employee will be using, from seasonal staff to full-time staff. You have been using the software for over a year and are very familiar..
Increase the attractiveness of the stock in free market : The board of directors of API, a relatively new electronics manufacturer, has decided to beginning paying a common stock dividend to increase the attractiveness of the stock in the free market. what is the current value of API's common stock? If the ..
How much money could you take out at the end : How much will $20,000 invested today at 3% interest be worth in 5 years if it is compounded Annually?Monthly - how much money could you take out at the end of 7 years?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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