What is the cost of equity for stan of the beta of the stock

Assignment Help Finance Basics
Reference no: EM13296327

Stan is expanding his business and will sell common stock for needed funds. if the current risk-free rate is 4% and the expected market return is 12%, what is the cost of equity for Stan of the beta of the stock is:

a. 0.75?
b. 0.90?
c. 1.05?
d. 1.20?

 

Reference no: EM13296327

Questions Cloud

Mendoza had purchased the winning ticket : Robert Mendoza declared that he bought a winning lottery ticket and was entitled to collect the 5.5 million dollar prize.  He had lost the ticket and was unable to claim the prize because lottery rules prohibited awarding the prize without the ticket..
Determine the cars speed at the bottom of the dip : The weight of passengers on a roller coaster increases by 60% as the car goes through a dip with a 38m radius of curvature
Compute the average power dissipated in the circuit : A circuit consists of a resistor in series with an inductor and an ac generator that supplies an rms voltage of 115 V. Find the average power dissipated in the circuit
What would the concentrationin the effuent be 7 days later : A lagoon with a volume of 1200 m^3 has been receiving a steady flow of a conservative waste at a rate of 100m^3/day for a long enough time to assume that steady-state conditions apply. The waste entering the lagoon has a concentration of 10mg/L.
What is the cost of equity for stan of the beta of the stock : Stan is expanding his business and will sell common stock for needed funds. if the current risk-free rate is 4% and the expected market return is 12%.
Compute the angle between the wire and the magnetic field : A wire of length 0.665 m carries a current of 21.0 A. In the presence of a 0.470 T magnetic field, compute the angle between the wire and the magnetic field
Calculate the space-mean speed in mile per hour : If there are 50 vehicles on a 4000-ft highway lane and the average time headway between two adjacent vehicles is 2.2 seconds. A) Calculate traffic density in vehicle/mile (vpm) and average space headway in feet/vehicle (fpv).
Explain what is the ph of a solution made by dissolving : What is the pH of a solution made by dissolving 0.052 grams of RbOH in enough water to make 64.9 mL of solution
How do voltages behave in series and in parallel : Make a table summarizing the rules for circuits with resistors: How to combine resistors in parallel, how do voltages behave in series and in parallel

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain decision on selecting a machine

Explain Decision on selecting a machine and compute the equivalent annual cost for both machines

  At what price would the bonds sell

Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 8%. At what price would the bonds sell? Round the answer to the nearest cent.

  Merger case study-general electric

For this SLP, think about your SLP company and the possibility of it merging with another company. Write down a two to three page paper answering the following questions:

  What would be the effective cost of that credit

If Holiday decides to forgo discounts, how much additional credit could it obtain? Round your answer to the nearest cent.

  What is the current bond price

Ninja Co. issued 13-year bonds a year ago at a coupon rate of 7.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 6.2 percent, what is the current bond price?

  Determine largest current assets

Choose a corporation for analysis that has been profitable for the last three fiscal years, is not a bank or financial institution, and is on a major United State Stock Exchange.

  Calculate annually withdrawn amount

Today you begin your retirement. 30 years ago you deposited $50,000 into an investment account that, since then, has always paid a 6 APR compounded yearly.

  Compute the employees earnings for that week

An employee is paid $8.80 per hour for a normal work week of 40 hours. During a given week, this employee worked a total of 50 hours. Compute the employees earnings for that week, assuming time and a half for overtime work.

  What is its price per share today

After that, the dividend is expected to increase at a constant annual rate of 6%. If the required return on Clare's stock is 16%, what is its price per share today?

  Significant factors driving your decision as a financial ma

Provide a rationale for the U.S. publicly traded company that you selected, indicating the significant factors driving your decision as a financial manager.

  Calculate price of the preferred stock.

The preferred stock of Ultra Corporation pays an yearly dividend of $6.30. It has a required rate of return of nine percent. Calculate the price of the preferred stock.

  What is the current share price

Bui Corp. pays a constant $13.40 dividend on its stock. The company will maintain this dividend for the next six years and will then cease paying dividends forever.

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