What is the required rate of return on the stock market

Assignment Help Finance Basics
Reference no: EM131140442

Apex Roofing's stock has a beta of 1.50, its required return is 14.00%, and the risk-free rate is 5.00%. What is the required rate of return on the stock market?

10.50% 

11.00% 

11.50% 

12.00% 

12.50%

Reference no: EM131140442

Questions Cloud

What is the value of teldar to gekko properties : The acquisition would be made immediately, if it is undertaken. Teldar's post-merger beta is estimated to be 2.2, and its post-merger tax rate would be 35%. The risk-free rate is 7%, and the market risk premium is 4%. What is the value of Teldar to G..
Determine the current it through the voltage sources : Determine the current IT through the voltage sources.
Address the historical progression of the fire problem : Identify and delineate on several factors that help explain the disparity between the high aggregate costs of fire for the nation, states, and communities, and lower perceptions of fire risks and costs.
Comparing and contrasting research designs : Pick from at least two of the 16 research designs described in chapter nine of our textbook. In a 500-750 word essay, compare and contrast the outcomes that would be derived from each design. Your essay should strictly follow APA formatting, citat..
What is the required rate of return on the stock market : Apex Roofing's stock has a beta of 1.50, its required return is 14.00%, and the risk-free rate is 5.00%. What is the required rate of return on the stock market?
What are the important points of developing the mission : What are the important points of developing the Mission, Vision, and Value statements and how important are these statements to the development of the Strategic Plan for the organization.
Comment on the key drivers affecting the stock price : Today's dividend is $10. Expected rate of return in the market is 15% and the firm's growth rate is 12%. The firm pays out 10% of its growth as dividend. Comment on the key drivers affecting the stock price.
Explanation of the methodology used in the article : Locate an article that uses a theoretical approach that might help you frame your own argument. Provide a short explanation of the methodology used in the article and which elements would be useful to you
What is the actual voltage of the source : what is the actual voltage of the source if the resistance of the meter is 50 kΩ?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the interest rates earned on each of the following

Find the interest rates earned on each of the following: a. You borrow $700 and promise to pay back $749 at the end of 1 year. b. You lend $700 and the borrower promises to pay you $749 at the end of 1 year. c. You borrow $85,000 and promise to pay b..

  Ebit is generally considered to be independent

Why EBIT is generally considered to be independent of financial leverage? Why might EBIT actually be influenced by financial leverage at high debt levels?

  Calculate the npv and irr of the project

Calculate the NPV and IRR of the project and if the cost of new machine has increased to $235,000, what are the NPV and IRR of the project?

  Which describes the annual percentage rate best

Which describes the annual percentage rate best?

  Important to collect accounts receivable as soon as possible

Why is it important to collect accounts receivable as soon as possible?

  What is the firm intrinsic value today

Hart Enterprises recently paid a dividend, D0, of $4.00. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 14%.

  Prepare a classified balance sheet in the vertical format

Prepare an Income Statement for the period ending 31 July 2014. Prepare a Classified Balance Sheet in the vertical format, as at 31 July 2014.

  How should the bank alter the duration of its assets

Given the estimates of duration in Problem 21, how should the bank alter the duration of its assets to immunize its net worth from interest-rate risk?

  At what unit sales level would wcc have the same eps

What would be WCC's EPS (1) under the old production process, (2) under the new process if it uses debt, and (3) under the new process if it uses common stock?

  Expected rate of return

You invest in a portfolio composed of a risky asset with an expected rate of return of 10% and a standard deviation of 12% and a treasury bill with a rate of return of 6%.

  Calculate franchises payback period and net present value

Calculate each franchise's payback period, net present value (NPV), internal rate of return (IRR), and modified internal rate of return (MIRR).

  Is the financial risk of the business different

What would the new debt ratio be if the machine were leased? If it is purchased?

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