What is lauryns asset beta

Assignment Help Financial Management
Reference no: EM13724917

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.8, a debt-to-equity ratio of 0.3, and a tax rate of 30 percent. Based on this information, what is Lauryn’s asset beta? (Round your answer to 2 decimal places) Show all work.

Reference no: EM13724917

Questions Cloud

Calculate the stocks coefficient of variation : One way to calculate a stock's beta is to- calculate the stock's coefficient of variation. calculate both the stock's mean return and the std.dev. of the returns.
What are the optimal portfolios for the two investors : The expected return on the S&P 500 index is 12%. The return on the T-bill is 5%. The standard deviation of return on the S&P 500 index is 18%. Investors can form portfolios from these 2 securities. Suppose investors have a utility function of the fol..
What must be his coefficient of risk aversion : Suppose we are told that an investor invests optimally and that he puts 20% in the Market portfolio and 80% in the Risk Free Portfolio. What must be his coefficient of risk aversion?
Expected return standard deviation russell fund : Expected Return Standard Deviation Russell Fund 16% 12% Windsor Fund 14% 10% S&P Fund 12% 8% The correlation between the returns on the Russell Fund and the S&P Fund is .7. The rate on T-bills is 6%. Which of the following portfolios would you prefer..
What is lauryns asset beta : You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.8, a debt-to-equity ratio of 0.3, and a tax rate of 30 percent. Based on this information, what is La..
Suppose a zero growth stock is expected to pay : Suppose a zero growth stock is expected to pay a $0.5 dividend every quarter and the required return is 5% with quarterly compounding. What is the price?
A firm just paid their annual dividend : A firm just paid their annual dividend of $2.0 a share. They recently announced that all future dividends will be increased by 5% annually. What is one share of this stock worth to you if you require a 15% rate of return?
What is the estimated value of this stock today : A company is expected to pay their first annual dividend 2 years from now. That payment will be $1.50 a share. Starting in Year 3, the company will increase the dividend by 5% per year. The required return from common shareholders is 15%. What is the..
What is the present value of growth opportunities : A company plan to pay a dividend of $5 per share. The growth rate is 7 percent and the discount rate is 12 percent. What is the present value of growth opportunities?

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the book value-liquidation value-replacement value

We know the following regarding Ryan Inc. Total A are $200m, Debt is $60m, Equity is $130m, cash is $50m and the number of shares is 1m. I estimate that the market value of equity is 3 times the book value of it. A fire sale of the firm would bring 4..

  Financial statements and forecasts for convenience

Size-up HCM using historical ratio analysis and a discussion of its business risk and financial risk and the Q1 tab reproduces HCM's financial statements and forecasts for your convenience.

  Considering two alternative planes

Shao Airlines is considering two alternative planes. Plane A has an expected life of 5 years, will cost $100 million and will produce net cash flows of $29 million per year. Plane B has a life of 10 years, will cost $132 million and will produce net ..

  Question 1 describe vernons product life-cycle theory of

question 1. describe vernons product life-cycle theory of fdi. what are the strength and weakness of the

  This project involves researching and writing a short

this project involves researching and writing a short research paper on your choice of kaizen or balanced score card.

  Beta and required rate of return

A stock has a required return of 11%; the risk-free rate is 2.5%; and the market risk premium is 4%. What is the stock's beta? Round your answer to two decimal places. If the market risk premium increased to 8%, what would happen to the stock's requi..

  What is the APR and EAR on this loan

You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 30-year mortgage loan for 80 percent of the $3,400,000 purchase price. The monthly payment on this loan will be $17,500. What is the APR and EAR on this loan?

  What is the bonds coupon rate

A 20-year Treasury bond is issued with face value of $1,000, paying interest of $40 per year. If market yields increase shortly after the T-bond is issued, what is the bond’s coupon rate? (Round your answer to 1 decimal place.)

  Discuss some ideas for a hypothetical e-commerce

discuss some ideas for a hypothetical e-commerce business.write a 450 paper in which you explain the process your team

  What are the net operating cash flows

Firm S is considering adding a robotic device to its production line. The device base price is $1,038,000.00, and it would cost another $21,500.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates a..

  What are the required annual payments on the loan

A couple borrows $935,000 for 7 years for the purchase of a vacation home at an interest rate of 7%. The loan requires that the interest and principal be paid in equal, annual payments. The interest is determined on the declining balance that is owed..

  There can be a good strategy with a bad product and a good

there can be a good strategy with a bad product and a good product with a bad strategy and this can impact product or

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