What is the expected rate of return on a stock with a beta

Assignment Help Financial Management

Reference no: EM13940159

The risk-free rate of return is 5 percent and the market risk premium is 9 percent. What is the expected rate of return on a stock with a beta of 1.28?

Reference no: EM13940159

Questions Cloud

Evaluating two different cookie-baking : You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $61,000, has a 5-year life, and has an annual OCF (after tax) of –$10,800 per year. The Keebler CookieMunster costs $94,000, has a 7-year life, and has an annual OCF (after..

How initiative affects the organization financial planning : A strategic planning initiative for the organization identified in the Week 2 assignment - Identify an initiative discussed in the organization's annual report. How the initiative affects the organization's financial planning

What is the firms weighted average cost of capital : AZ Products has 375,000 shares of common stock outstanding at a market price of $32 a share. Next year's annual dividend is expected to be $1.50 a share and the dividend growth rate is 2 percent. The firm also has 7,500 bonds outstanding with a face ..

What is the company target debt-equity ratio : Fama's Llamas has a weighted average cost of capital of 13 percent. The company's cost of equity is 18 percent, and its pretax cost of debt is 8 percent. The tax rate is 32 percent. What is the company's target debt-equity ratio?

What is the expected rate of return on a stock with a beta : The risk-free rate of return is 5 percent and the market risk premium is 9 percent. What is the expected rate of return on a stock with a beta of 1.28?

What type of organizational arrangement : What type of organizational arrangement(s) do you see the two firms using in coordinating their worldwide operations?

Considering investing in a project with the cash flows : Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistic for the pr..

Prepare paper summarizes how juvenile justice system operate : Prepare a paper that summarizes how the juvenile justice system operates. Support your viewpoint with local data. Be sure to include the following:- The original reason for the creation of a juvenile justice system.

Find the errors in the javascript code : I get this error when running the Java Script above: JS Error: TypeError: Object # has no method 'error'

User Account

All Pages