The amount of the risk premium on zelo shares

Assignment Help Financial Management
Reference no: EM131356859

Zelo NV share has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo shares?

Reference no: EM131356859

Questions Cloud

Calculate boehms total dividends : Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years and in 2013 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2014 earnings are expected to jump to $12.6 million, and Boehm plans to in..
Discuss how change can be managed for a company : Discuss how change can be managed for a company that has never done global business outside of the U.S. Create 3 slides in Microsoft PowerPoint, with detailed speaker notes. This will be added to your teams powerpoint
Violation of the accountants code of ethics : ACC300 AUDITING ASSIGNMENT - You are asked to state whether there has been a violation of the Accountants Code of Ethics and state which ethical principle has been violated briefly providing a reason for your opinion.
What is the quarterly standard deviation of returns : Ford motor company had realized returns of 10%, 20%, 20%, 10% over four years. What is the quarterly standard deviation of returns for ford calculated from this sample?
The amount of the risk premium on zelo shares : Zelo NV share has a beta of 1.23. The risk-free rate of return is 4.5% and the market rate of return is 10%. What is the amount of the risk premium on Zelo shares?
What are the ethical responsibilities of the organization : What are the ethical responsibilities of the organization, and you as an employee, in this case? What would someone who follows Kant's duty-based ethics do in this situation? Why?
Board structure-ownership structure and firm performance : Tobin’s Q is used to indicate firm performance in ‘Board structure, ownership structure and firm performance: A study of New Zealand firm’. It is found that the mean value of firm performance is 0.1293 with minimum value is 0.0001, and the maximum va..
What are the three steps in decision making : What factors distinguish the types of information required by strategic level managers, by tactical level managers, and by operational level managers?
Components of the cutaneous system : Select one example from the following: putting your hand in cold water, shape test, and a cortical body map of the left and right hand of a violinist. Explain your example using the components of the cutaneous system

Reviews

Write a Review

Financial Management Questions & Answers

  Shares outstanding with a par value

Alpha Company is paying a $1.50 per share dividend today. There are 200,000 shares outstanding with a par value of $1 per share. As a result of this dividend, the:

  What is the net asset value for this mutual fund

The World Income Appreciation Fund has current assets with a market value of $4 billion and has 110 million shares outstanding. What is the net asset value (NAV) for this mutual fund? The Madura HiGro Fund has a net asset value of $47 per share. It c..

  Would mortgages be likely to have a higher interest rate

An expected inflation premium is said to be part of the interest rate. What does this mean?- Would one of these mortgages be likely to have a higher interest rate than the other? Explain your answer.

  Market in which no arbitrage opportunities are available

Which of the following statements is true in a market in which no arbitrage opportunities are available? I. A long forward for delivery in one year at $100 is worth more than a long call option struck at $100 that expires in one year

  Funds acquired by the firm through retaining earnings

Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, and no flotation costs are required to raise them, but capital raised by selling new stock or bonds does have ..

  Calculate eac for both the models

Model A costs $9,300 and is expected to run for 7 years; The annual maintenance costs are $820 for model A. Model B costs $15,900 and has an expected life of 9 years; The annual maintenance cost are $710 for model B. Assume that the opportunity cost ..

  Like to make single investment

Sarah Wiggum would like to make a single investment and have ?$1.6 million at the time of her retirement in 28 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest? today? If Sarah earned an annual ..

  What was annual change in average selling price

In October 2012, the average house price in the United States was $233,600. In October 2003, the average price was $287,600. Required: What was the annual change in the average selling price?

  What is the initial price on each bond

What is the initial price on each bond?- Assume both bonds promise interest at 10.5 percent, compounded semiannually. What will be the initial price for each bond?

  Investors start to receive proceed from liquidation process

Suppose that a recently-healthy firm has just defaulted, has been liquidated, and where the firm's assets were worth $100 million before the liquidation.  Past which recovery rate would common stock investors start to receive proceeds from the liquid..

  Accounts payable on plant utilization

The Baldwin company wants to decrease its plant utilization for Buddy by 15%. How many units would need to be produced next year to meet this production goal? Ignore impact of accounts payable on plant utilization.

  What is the maximum dollar amount of loans bank could make

A bank has $7.5 mil in reserves, $35 mil in bank loans, and $45 mil of deposits. If the reserve requirement is 15%, what is the bank’s reserve position? What is the maximum dollar amount of loans the bank could make? What would happen to the nation’s..

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