What is the expected rate of return on the market

Assignment Help Financial Econometrics
Reference no: EM13335071

The expected rate of return on stock in Company D is currently 10%. Company D has a Beta of 1.40. If the risk free rate of interest is currently 3%, what is the expected rate of return on the market?

Reference no: EM13335071

Questions Cloud

What is the angular impulse on the basketball : Two children are playing a game. The rst throws a basketball straight up, and the second tries to hit it with a thrown baseball. What is the angular impulse on the basketball
By how much would aerelons shares be expected to fall : If Aerelon has 65 million shares outstanding, an equity cost of capital of 12%, and no debt, by how much would Aerelon's shares be expected to fall in price as a result of this accident
Integrated software application for patient records mgmt : Assume that you have been asked to procure a new integrated software application for patient records management.
What is the angular speed of the bar : A small 15.0-g bug stands at one end of a thin uniform bar that is initially at rest on a smooth horizontal table. What is the angular speed of the bar just after the frisky insect leaps
What is the expected rate of return on the market : The expected rate of return on stock in Company D is currently 10%. Company D has a Beta of 1.40. If the risk free rate of interest is currently 3%, what is the expected rate of return on the market
Establish a uniform system of reporting : What are the problems when an MNC tries to establish a uniform system of reporting for its worldwide operations? How can these problems be solved?
What percentage of risky portfolio will maximize utility : A fund has expected risk premium of 8% and an expected SD of 20%. T-Bill is 3%. Utility function is U=E(r)-2.5SD^2. What percentage of risky portfolio will maximize utility
Determine what is clarks wacc to fund capital projects : Clark Communications has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Clark's WACC, an analyst has accumulated the following information
The steady state total output grows at what percent rate : In a Solow Growth model with technological change, if population grows at a 2 percent rate and the efficiency of labour grows at a 3 percent rate, then the steady state total output grows at what percent rate?

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Compute the payback statistic for project x

Compute the payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable payback is 5 years.

  What rate of return did the coin return for the numismatist

Assume that in 2010, a gold dollar minted in 1885 sold for $135,000. For this to have been true, what rate of return did this coin return for the lucky numismatist

  What is the amount of scholarship hal should include

For each of the following situations, indicate how much the taxpayer is required to include in gross income: a. Steve was awarded a $5,000 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees.

  What is present value of a security that will pay in 20years

What is the present value of a security that will pay $12,000 in 20 years if securities of equal risk pay 5% annually

  What is inheritance worth today which compounded annually

Six years from now, you will be inheriting $100,000. What is this inheritance worth to you today if you can earn 6.5 percent interest, compounded annually

  What is the discount yield and the annual rate of interest

if a six month treasury bill is purchased for .9675 on the dollar, what is the discount yield, the annual rate of interest, and the compound interest. what will these yields be if the discount price falls to .94

  What is cryptons cost of capital for the firms tax rate

Crypton Electronics has a capital structure consisting of 45% common stock and 55% debt. A debt issue of $1,000 par value, 6.2% bonds that mature in 15 years and pay annual interest will sell for $978.

  What is the after tax salvage value of the asset

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,040,000 and will be sold for $1,240,000 at the end of the project.

  What is stockholders equity for this company of total debt

A company has an equity multiplier of 2. What is stockholders' equity for this company if total debt is $100,000?

  What are pats first weeks deductions for social security

Pat Maninen earns a gross salary of $2,100 each week. Assume a rate of 6.2% on $106,800 for Social Security and 1.45% for Medicare. What are Pat's first week's deductions for Social Security and Medicare

  What is the interest for one month at an 20 percent apr

sidney took a 775 cash advance by using checks linked to her credit card account. The bank charges a 3 percent cash advance fee on the amount borrowed and offers no grace period on cash advances.

  Find additional equity financing is required for next year

Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,450, current assets of $790, current liabilities of $480, net fixed assets of $1,640, and a 5 percent profit margin.

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