### What is the expected return of the stock

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##### Reference no: EM13810252

The Bumble Bee. Corp. has a beta of 1.45. You observed the risk free rate of return to be 6.5% and the market risk premium of 5%. What is the expected return of the stock?

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 What is the expected price of the stock at time : Bonnie’s Bee Farm Inc. just had their annual board of directors meeting, where they decided they plan to start paying dividends in three years (at time 3). The first dividend will be \$1.00. After that, they plan to increase the dividend by \$.25 in ea.. Effectively eliminating minority participation : Firm ABC just elected three members to their board of directors. In doing so, they elected them one at a time, effectively eliminating minority participation. Thus, they did _______ voting. Calculate the expected return of the fund : The Successful Mutual Fund’s beta is 1.4 and the market risk premium is 6.5% and the return in the market is 12%. Calculate the expected return of the fund? (Hint: need to find the risk free rate first, then calculate the return). (14.6%) What is the beta of the portfolio : The Index Portfolio has invested in three stocks with the following beta and dollar amount of investment. The markets expected return is 13% and the risk free rate is 5%. What is the beta of the portfolio? What is the expected return of the portfolio.. What is the expected return of the stock : The Bumble Bee. Corp. has a beta of 1.45. You observed the risk free rate of return to be 6.5% and the market risk premium of 5%. What is the expected return of the stock? What do you foresee happening in the razor market : (Based on WSJ article) One of the most important factors in company success is having a true competitive advantage. It is the firm’s competitive advantage that allows it to earn above average risk-adjusted returns. For years Gillette’s technology and.. How can investors justify these high valuations : Airbnb recently sold securities at a price that indicated a company value of over \$25 Billion Dollars.Other recent startups such as Uber and Alibaba have had similar sky-high valuations. Given that these companies don’t pay any dividends and may not .. Are such amounts excessive : Critics have charged that compensation to top managers in the United States is simply too high and should be cut back. For example, focusing on large corporations, Robert Kotick, CEO of Activision Blizzard, earned about \$64.9 million in 2013. Example of an easy or difficult capital budgeting decision : In a recent WSJ article you read that Hulu has stepped up their competition with Netflix by making the decision to invest millions in new movies and TV shows. Do you think this would be an example of an easy or difficult capital budgeting decision? W..

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