What is the company asset beta

Assignment Help Business Management
Reference no: EM131210619

Johnson company has an equity beta of 1.5, the risk-free rate of return is 3.0 percent, the market return is 14.7 percent, and the pretax cost of debt is 9.4 percent. The debt-equity ratio is .47. If you apply the common beta assumptions, what is the company's asset beta?

Reference no: EM131210619

Questions Cloud

Discuss the elements of a good fraud report : What does it mean to create a "Culture of Honesty, Openness, and Assistance?" Give an example from an organization with which you have been affiliated.
Write a matlab program to compute the kalman gain : Write a MATLAB program gain.m to compute the Kalman gain K(n) for a stationary process with: x(n) = Ax(n - 1) + w(n)
Compounds the interest in daily basis : Suppose you borrow$10,000 for 1 year on your Visa at an annual interest rate of 25%. What effective annual yield (in percent) will you actually end up paying if Visa compounds the interest in daily basis?
Evaluate how your chosen aspect of diversity : Evaluate how your chosen aspect of diversity, in combination with two other aspects of diversity, can lead to increased needs or issues. For example, if someone is female, African American, and lesbian, will there be additional challenges? Select ..
What is the company asset beta : Johnson company has an equity beta of 1.5, the risk-free rate of return is 3.0 percent, the market return is 14.7 percent, and the pretax cost of debt is 9.4 percent. The debt-equity ratio is .47. If you apply the common beta assumptions, what is ..
Review the accounting treatment and prepare the report : Review the accounting treatment and prepare the report.- Report should be in letter format. -
How to help that person work through their shame and sin : Discuss the role that sexual shame plays in people's sexual behavior. Choose a sexual issue such as sexual compulsion to sexual addiction, homosexual behavior, adultery, a paraphilia such as exhibitionism, etc. Consider both clinical and a biblica..
Company selection and initial research : Assignment: Inventory Analysis and Final Project: Company Selection and Initial Research Part One: Inventory Analysis
Can tom prevail in a breach of contract action : Legal Environment and Corporate Governance Can Tom prevail in a breach of contract action against Ritz? Critically discuss using case law to illustrate your points - Is the assignment by Ritz to CreditCo effective? Critically discuss using case law t..

Reviews

Write a Review

Business Management Questions & Answers

  Discuss the role of pre-service

1. Discuss the role of pre-service, point-of-service, and after-service strategies for effective implementation. Provide at least one example of each.

  Description of managing organizational changediagnosing the

description of managing organizational changediagnosing the problem collapsecreate a force field analysis to present to

  Identify methods of control that managers can use

Identify methods of control that managers can use Outline the steps in the control process Explain the major determinants of an effective control system.

  Focus on the last two or three years and the future

Case is Costco Wholesale in 2012: Mission, Business model, Strategy Arthur A. Thompson  The University of Alabama A.Summary: Briefly summarize the situationpresented in the case Do not repeat history, focus on the last two or threeyears and the futur..

  Contract to supply motors for all refrigerators

Forbelt Corporation has a 1-year contract to supply motors for all refrigerators produced by the Ice Age Corporation. Ice Age manufactures the refrigerators at the four locations around the country: Boston, Dallas, Los Angeles, and St. Paul. Plans ca..

  Three forces or trends from the remote environment

Three forces or trends from the remote environment

  Illustrate what about under armour evolution

Illustrate what about Under Armour's evolution and current business strategy may pose problems going forward? 2. Conduct a Value Chain analysis to identify value-creating activities.

  Illustrate what is the difference among labour law

Explain why do you think the Wagner Act was successful when other legislation failed? Illustrate what is the difference among labour law also employment law?

  What is a business model

What is a business model? How does it differ from a business plan?

  Does knox deserve a reprimand

Sales VP Jeremy Silva emails the sales team, praising Knox's manoeuvres. However, the human resources vice president thinks which Knox breached the industry's ethics code. Does Knox deserve a reprimand? Illustrate what would you do?

  Communication and identity worksheet-self concept

Find the term “self concept” in your Communication in a Changing World textbook and write the definition in here so that you can easily refer to it

  Describing effective use of words by leader

Describe how the leader you have chosen has mastered the following elements: The effective use of words.

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