What is the required rate of return on stock b

Assignment Help Financial Accounting
Reference no: EM132873123

Question 1: At the end of the year 2010, 2011, 2012 and 2013 price of stock B is $122, $189, $219 and $309 respectively. Also, price of TSX200 is $300, $297, $315 and $400 in 2010, 2011, 2012 and 2013, respectively. What is the required rate of return on stock B if risk-free rate is 3% and market return is 8%?

a. 3.51%

b. None of the available choices

c. 2.47%

d. 2.15%

e. 6.45%

Reference no: EM132873123

Questions Cloud

Summarize the negative consequences of trade liberalization : 1. With reference to international trade, summarize the negative consequences of trade liberalization in developing countries
Explain how through use management information systems : Explain how through the use management information systems, her competitors are lowering costs and improving profit margins through increasing efficiency.
What the discount rate for project cash flows should be : If the company is evaluating a new investment project that has the same risk as the firm's typical project, the discount rate for project's cash flows should be
Explain why payback sucks as a value metric : Explain in simple business terms what NPV means to your CEO. Explain what the Profitability Index is and how it should be used.
What is the required rate of return on stock b : What is the required rate of return on stock B if risk-free rate is 3% and market return is 8%? At the end of the year 2010, 2011, 2012 and 2013 price of stock.
Wastewater treatment plant : This tour of a wastewater treatment plant is an example of a high-volume, public project. How is capacity defined at a wastewater treatment plant?
Which prices would the holder of the put option receive : Which prices would the holder of the put option receive a positive profit? A put option on IBM stock has a premium of $8 and an exercise price of $98.
Calculate the deferred tax account balance at December : The tax rates enacted as of the beginning of 2019 are as follows: 31% for 2019 and 2020; Calculate the deferred tax account balance at December 31, 2020
Team-building activity : Suggest one team-building activity that would allow you to learn about the different members of your team.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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