What is the risk free rate

Assignment Help Finance Basics
Reference no: EM13262318

A stock with a beta of 1.5 has a required return of 14%. If the expected (required) return on the market is 11%, then what is the risk free rate?

Reference no: EM13262318

Questions Cloud

Write the transfer function av for the amplifier : A transistor amplifier has a midband gain of -120, a high cutoff frequency of 36KHz, and a bandwidth of 35.8 KHz. In addition, the actual response is also about -15 dB at f=50Hz. Write the transfer function Av for the amplifier.
Which of these features benefits small shareholders : Which of these features benefits small shareholders?
Calculate the angle of the triangular nose to be : A flying wedge spaceship is a right triangle in side view. At rest, the base and height (which form the 90° angle) measure 8.9 m, calculate the angle of the triangular nose to be
Calculate the torque acting on a solenoid : A solenoid is 25 cm long, 3 cm in diameter, and carries 4 A dc in its 400 turns. Its axis is perpendicular to a uniform magnetic field of 0.8 weber per square meter in air. Using an origin at the center of the solenoid, calculate the torque acting..
What is the risk free rate : A stock with a beta of 1.5 has a required return of 14%. If the expected (required) return on the market is 11%, then what is the risk free rate?
Describe the voltaic cell : Which of the following statements are correct based on the voltaic cell represented below Ni(s)INi2+(1.0M)II Fe3+(0.10M)IFe2+(1.0M) I Pt(s)
What is portfolio as sharpe ratio : Approximately what percentage of Portfolio E's returns will be greater than 25%?
Will a power supply capable of delivering to power heater : Will a 12VDC power supply capable of delivering 1 amp be able to power this heater (resistor). Use Ohm's law to show whether or not the power supply will be able to deliver the required current.
Find the upward force exerted by the pivot : The rotor (flywheel) of a toy gyroscope has mass 0.140 kg. Its moment of inertia about its axis is The mass of the frame is 0.0250 kg. Find the upward force exerted by the pivot

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate dahl''s 20x6 consolidated net income

Calculate Dahl's 20X6 consolidated net income and identify the amount attributable to Dahl's shareholders and to the non-controlling interest.  Be sure to show all your calculations.  You are not required to prepare a consolidated income statement.

  Determine forecasted addition to retained earnings

The Corporation forecasts that its sales will increase by 10% in the next year and its operating costs will rise in proportion to sales. The corporation interest expense is expected to remain at $200 million,

  What are the firm market value capital structure weights

The market risk premium is 8.2 percent, T-bills are yielding 3 percent, and Titan Mining's tax rate is 35 percent.

  Price of the product when it was scarce

What is the product, and why do you think it became scarce? What happened to the price of the product when it was scarce?

  Explain the buildup of receivables

Evaluate if Lealos should proceed or not and explain the buildup of receivables in this case. The required return is .95 percent per month.

  Evaluate the following statements concerning variance analys

Evaluate the following statements concerning variance analysis.

  Determine the amount of dividends per share for common

Determine the amount of dividends per share for common and prefrred stock for all 3 years. The preferred shares are cumulative preferred.

  Estimate the market value of one share

The Charleston Corporation is a relatively small, privately owned company. Last year the company had after-tax income of $15,000, and 10,000 shares were outstanding.

  Prepare journal entry to record the bonds life

Shopko issues $185,000 of 12 percent, three-year bonds dated January 1, 2009, that pay interest semiannually on June 30 and December 31. They are issued at $189,620.

  Effective rate of return on investment

If you go with investment by how much will the effective rate of return increase.

  What is the cost of preferred stock

The same firm also has an issue of 2 million preferred shares outstanding with a market price of $12.00. The preferred shares offer an annual dividend of $1.20. What is the cost of preferred stock?

  Calculate the expected net cash flow

Decision tree analysis shows a project to have several possible outcomes the best of which has an net present value of $12M computed over a 5-year life. This best case path has an overall probability of occurring of 20 percent.

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