What is the company''s cost of equity

Assignment Help Finance Basics
Reference no: EM131021298

Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market risk-premium is 4.00 percent and the risk-free rate is 2.00 percent. What is the company's cost of equity if Tribbles' systematic risk is 50.00% larger than the market portfolio? Enter your answer as a percent, not a decimal, but don't include % sign.

 

Reference no: EM131021298

Questions Cloud

Complete the journal entry in proper form : Prepare and present calculations for partial credits for questions with calculations and presentations - Explain the issues related to difference and how they would be resolved.
How much must you repay at the end of the 6 months : If you borrow $900 for 6 months at 14% annual simple interest, how much must you repay at the end of the 6 months?
Pembroke co. wants to issue new 17-year bonds : Pembroke Co. wants to issue new 17-year bonds for some much-needed expansion projects. The company currently has 10 percent coupon bonds on the market that sell for $1,050, make semiannual payments, and mature in 17 years. What coupon rate should the..
What is the firm''s eva : Britton Industries has operating income for the year of $3,100,000 and a 39% tax rate. Its total invested capital is $18,000,000 and its after-tax percentage cost of capital is 5%. What is the firm's EVA?
What is the company''s cost of equity : Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market risk-premium is 4.00 percent and the risk-free rate is 2.00 percent. What is the company's cost of equity if Tribbles' systematic risk is 50.00% larger ..
Determining the percentile of the distribution : Human body temperatures for healthy individuals have approximately a normal distribution with mean 98.25°F and standard deviation .75°F. (The past accepted value of 98.6° Fahrenheit was obtained by converting the Celsius value of 37°, which is co..
What is the debt-to-equity ratio : Jones Soda estimates that its cost of capital is 7.30 percent. You observe that the company's required return on stock is 15.00 percent and the (after-tax) yield to maturity on its debt is 4.00 percent. What is the debt-to-equity ratio?
How many address bits will the new design need : A particular 1-M-bit-square memory array has its peripheral circuits reorganized to allow for the readout of a 16-bit word. How many address bits will the new design need?
What is the weighted average cost of capital : Nacho Libre S.A. has 10,000,000 common shares outstanding that trade for $30.00 per share. The company has also issued one bond with a par value of $60,000,000 that currently trades at 105 percent of par.

Reviews

Write a Review

Finance Basics Questions & Answers

  Time consuming activities

Explain why is short-term financial management one of the most important and time-consuming activities of the financial manager? Define net working capital?

  What costs are relevant to decision making

1. Distinguish between the different types of costs that were examined this week, such as sunk costs, opportunity costs, and outlay costs. [please also mention other costs that are not listed] 2. What costs are relevant to decision making?

  The current stock price is 41 and the contract is on 100

suppose that you write a put contract with a strike price of 40 and an expiration date in 3 months. the current stock

  Idetifying financial markets

Identify and describe the different financial markets, their functions, primary instruments, and the investor types. But, my initial answer to this question would have not been initially focused on the primary and secondary markets.

  Determine the opportunity cost

Suppose the United State can produce Toyotas at the cost of $18,000 per car and Chevrolets at $16,000 per car. In Japan, the cost of producing Toyotas 1,000,000 yen, and the cost of producing Chevrolets at 500,000 yen.

  What is icu pretax cost of debt

ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 7.4 percent ..

  Do you approve a program with a favorable rate of return

do you approve a program with a favorable rate of return and net present value that exceeds the governmental entitys

  Complete the forecast for three years of income statement

Deliverables1. Please complete the forecast for three years of the income statement and the balance sheet, using the spreadsheet.2. Calculate the amount of additional funds needed for each of the three years.

  Computing value of covered interest arbitrage

Assume the current spot rate is C$1.1875 and the one-year forward rate is C$1.1724. The nominal risk-free rate in Canada is 4 percent while it is 3 percent in the U.S.

  How much does it typically cost a company to go public in

how much does it typically cost a company to go public? in other words if an established private firm wants to sell

  What is the economic order quantity

The carpets are sold out before they are restocked. What is the economic order quantity?

  What is the dividend yield and capital gains yield today

What is the dividend yield and capital gains yield today

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