What is the discount factor

Assignment Help Financial Management
Reference no: EM131210068

What is the discount factor if beta is 1.2, the market risk premium is 5 percent, and the riskfree return is 4 percent?

Reference no: EM131210068

Questions Cloud

Define pair programming : Define pair programming. What coding standards should be followed during source code writing? Describe different kinds of reviews performed during software construction.
How does a firm choose between debt and equity financing : How does a firm choose between debt and equity financing? - What are the advantages and disadvantages of each?
Unintended consequences of some of government : Write a paper about unintended consequences of some of government's "fixes" for unemployment. To achieve maximum points for content and analysis, the following elements need thoroughly addressed:
What is independent verification and validation : What is independent verification and validation? Why is software testing necessary? What are testing types? What activities are done in a software testing phase/project? What are the benefits of test automation? Describe the defect life cycle.
What is the discount factor : What is the discount factor if beta is 1.2, the market risk premium is 5 percent, and the riskfree return is 4 percent?
Why is maintenance needed for software products : List common maintenance processes. What activities are involved in software release?
Copies of the original publication with submission : 1. Do a research through various media, webpages, corporate websites, newspaper, journals, magazines, etc. and find one example of agency problem and one example of stewardship theory. Please attach the copies of the original publication with this..
What is the value of a share of stock : If the expected cash flow is constant and equal to $10, what is the value of a share of stock with the discount factor?
What are some of the affect genres movie produce : What are the four basic approaches to documentary cinema? How are these approaches blended and reinterpreted by contemporary documentary filmmakers?

Reviews

Write a Review

Financial Management Questions & Answers

  Compare cash and accrual accounting methodology

Describe the three types of project risks and detail the situation in which each type is most relevant when making a capital budgeting decision. Include the effect of correlation. Compare and contrast cash accounting methodology and accrual accountin..

  Proximity sensor attached to the tip of an endoscope

A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting the surgeon to the location of critical retinal tissue. A certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0..

  Businesses to initially be formed as sole proprietorships

If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small businesses to initially be formed as sole proprietorships?

  What was the percentage change in the price of the bond

A company issues a ten-year bond at par with a coupon rate of 6% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 7.8%. What was the percentage change in the price of the bond over the past two ..

  Holdings and reinvest the proceeds elsewhere

You own the stock of SageTech and its current price is $55.00/share. It pays no dividend today. Based on your own research, you expect SageTech to pay its first dividend of $3.80/share at the end of Years 1 and 2 (12 and 24 months from now).  In ligh..

  Unexpected increase in firms accounts receivable period

Which one of the following would tend to create an unexpected increase in a firm's accounts receivable period?

  Find the payment that should be used for the annuity due

Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $8000; quarterly payments for 8 years; interest rate 4.1%.

  Using the accounting based equity valuation formula

Assets and liabilities at the end of 2005 for Tripod Inc. are $4,970 and $2,220 respectively. Net income and dividends for fiscal 2005 were $500 and $200, respectively. Tripod has 100 shares outstanding as of 12/31/05. What would you be prepared to p..

  Calculate the number of units of finished goods

Dakota Fan, Inc., manufactures an inexpensive household fan that it sells to retailers for $25 per unit. All sales are on account, with 30 percent of sales collected in the month of sale and 70 percent collected in the following month. Determine the ..

  Endorsement deal with a prominent sponsor

Mr. Smith signs a five-year endorsement deal with a prominent sponsor. Under this deal Hyun-Woo will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the p..

  What is this bonds yield-to-call

Suppose that you have a bond that is currently trading for 1,234.56, has just paid its coupon, has a time-to-maturity of   14 years, has an annual coupon rate of 7.1%, and a face value of $1,000. This bond is unique in that the issuing firm has the r..

  Dividend changes-issues of debt-stock splits

What is asymmetric information and how does it affect how investors view financial moves like dividend changes, issues of debt, stock splits, etc.?

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