What is the stock abnormal return

Assignment Help Financial Management

Reference no: EM131578205

You consider buying a share of stock at a price of $15. The stock is expected to pay a dividend of $.90 next year, and your advisory service tells you that you can expect to sell the stock in 1 year for $18. The stock's beta is 1.1, rf is 12%, and E[r_m] = 22%. What is the stock's abnormal return?

Reference no: EM131578205

Questions Cloud

Standard soding schemes used in data representation : Using ones complement, convert the decimal number -9 into a 6 bit binary number. State 3 standard soding schemes used in data representation.

How much was its net cash flow : The firm had $500,000 of debt that carry, on average, 5.8% interest rate, and its income tax rate was 38%. How much was its net cash flow?

What is the amount of profit or loss during december : By what amount did Rob Elliot's equity increase or decrease during the period? What is the amount of profit or loss during December

Consequences of not taking the actions : A running computer and drugs are visible on the front seat of the car.

What is the stock abnormal return : What is the stock's abnormal return?

Concerning bond ratings companies pay rating agendas : Concerning bond ratings companies pay rating agendas such as Moody s and S & P to rate their bonds, and the costs can be substantial.

Discuss delinquent and criminal behavior by youths : What can police officers do to be effectively involved in the prevention of delinquent and criminal behavior by youths

What will the eps of the combined entity be after the merger : How many new shares must DePaul industry issue to complete the transaction? What will the eps of the combined entity be after the merger?

Company depreciation and amortization expense : What was the company’s depreciation and amortization expense?

User Account

All Pages