What is the required rate of return on stock

Assignment Help Financial Management

Reference no: EM131960523

1. Your firm is issuing 14-year zero coupon bonds with a 5% yield and pays annually. The goal is to raise $3,000,000. What is your company’s total repayment 14 years from now?

2. The risk-free rate is 5.3%, the market risk premium is 6.9%, and the stock’s beta is 0.64. What is the required rate of return on the stock, E(Ri)? Use the CAPM equation.

3. Suppose the real rate is 12.83% and the inflation rate is 5.34%. What is the nominal rate? Use the Fisher Equation to get the answer.

Reference no: EM131960523

Questions Cloud

Website with human computer interaction : What tools to use for creating a interactive website with human computer interaction i.e. code academy etc.

What is after-tax salvage value : Today, it is selling this equipment for $29,980. What is the after-tax salvage value if the tax rate is 36 percent?

Explain the organizational purpose guideline : Please explain the organizational purpose guideline and identify how it has pertained to health care organization prior to the passage of the PPACA.

Too many sub menus can be confusing to the user : Too many sub menus can be confusing to the user? What are your thoughts in this? It is important to turn on security on the web server before deploying

What is the required rate of return on stock : The risk-free rate is 5.3%, the market risk premium is 6.9%, and the stock’s beta is 0.64. What is the required rate of return on the stock, E(Ri)?

What conditions would you sever a networking relationship : Write a 280- to 380-word response to the following question: Under what conditions would you sever a networking relationship? Explain your answer.

Designed and attractive web pages : In your opinion what are the best features of a well designed and attractive web pages and why? Justify your answer with examples.

Direct and indirect costs of going public for company : Define and discuss the impact of direct and indirect costs of going public for a company.

Discuss the answers to your social issues question : Discuss the answers to your Ethical/Social Issues question (from a strategy/policy perspective). Must use APA format, graudate level paper mandatory.

User Account

All Pages