User Account

All Pages

Required rate of return according to capm

Assignment Help Business Management
Reference no: EM131218227

The CIS Corporation's stocks have a beta of 2. The risk-free rate is 7.5% and the expected return on the market portfolio is 15%. The corporation presently pays a dividend of Rs.4 per share, and investors expect it to experience a growth in dividends of 10% per annum for many years to come.

  1. What is the stock's required rate of return according to CAPM?
  2. What is the stock's present market price per share, assuming this required return?
  3. What would be the required rate of return and market price per share if the beta were 0.50? (Assume that the other things stay the same.)
  4. Explain the change in required rate of return and market price per share  in part.

Reference no: EM131218227

Questions Cloud

Victim of age discrimination : Mr. Zimpfer was a victim of age discrimination according to the ADEA and case law? Explain your position. Cite relevant court cases to justify your position. If you are undecided, explain why?
Ultimate burden in proving age discrimination : Who has the ultimate burden in proving age discrimination in this case and what is that burden?
How well each of them is represented in discobolus : Conclude with your opinion on what part of human nature/mind each of the sculptures (Doryphoros, Discobolus, and Laocoön) primarily appeals to. Then compare how well each of them is represented in Discobolus and how in Laocoön and his Sons.
Leader and what leadership role : For Leader Analysis Paper #1, please submit a 4-5 page (minimum) double-spaced paper that details the following: 1. Who is your leader and what leadership role/s has this person had?
Required rate of return according to capm : What is the stock's required rate of return according to CAPM? What is the stock's present market price per share, assuming this required return?
Define at least two potential causes of suicide among teens : Discuss whether the available statistics accurately represent the evidence (e.g., can these statistics underreport the actual rates?). Describe at least two potential causes of suicide among teens according to the scientific literature.
Types of leadership power and the situational approaches : In this module, you learned about the types of leadership power and the situational approaches to leadership used to determine appropriate leader behavior.Answer the following questions by posting 1-2 paragraphs each:
Ideas and content must be richly developed : Your paper should be clear, engaging, original, and focused. The ideas and content must be richly developed with details and examples. The organization and form should enhance the central idea and theme of your work.
Discuss also the goals and objectives of your efforts : Explain why problem delineation and definition is so important to the policy development process. Explain why it is necessary to outline the goals and objectives of a policy.

Reviews

Write a Review

Business Management Questions & Answers

  Question reagrding the risk assessment plan

We all face potential hazards in our workplaces and in our homes. Ideally we can eliminate or control many of these; however, if and when they occur, a Risk Assessment Plan is our best defense. To understand the preparation and use of such a plan,..

  Find the major political and risks

Find the major political and risks  associated with investing in a foreign country.

  Race and class contribute to dynamic of gentrification

How do diversity demographics, such as race and class, contribute to the dynamic of gentrification?

  What are the sweeps and why are they important?

What are the Sweeps and why are they important?

  Define whether or not the law should prohibit

Define whether or not the law should prohibit all immoral behavior and provide a rationale to justify your answer.

  Discuss the elements of planning control and decision making

Discuss the elements of planning, control, and decision making that are used by that company. If this information is not readily available, assume what these elements might consist of. Summarize the main elements by including at least two examples..

  Determining the demand-supply analysis

An industry's supply and demand curves are given by the following equations: QD = 2000 - 4P and QS = 6P

  What is your leadership style

What is your leadership style?  Describe the organizational culture which will result from your leadership? How will you resolve conflict in the organization?  Consider organizational power, politics and justice.

  Business-effective executive leadership

Business: Effective Executive Leadership - How can business managers and leaders expand on their contribution to the business throughout their roles?

  Describe escalation of commitment

Describe escalation of commitment

  They effect our purchasing decisions

What are margins and how do they effect our purchasing decisions?  What marketing techniques can companies use to support the pricing schemes that support their margins?

  Responding to interview questionsonce you have a

responding to interview questionsonce you have a resumeacute that gets noticed by employers the next step in securing

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd