What must expected return on the market be

Assignment Help Financial Management
Reference no: EM131336272

A stock has an expected return of 11.6 percent, its beta is .91, and the risk-free rate is 5.8 percent. What must the expected return on the market be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Market expected return %

Reference no: EM131336272

Questions Cloud

Describing the issues facing ports in the future : Create a reflection post describing the issues facing ports in the future. Provide a summation of how you will use these lessons in the future.
What is the practical limit based on liquidity : Planetary Travel Co. has $165,000,000 in stockholders’ equity. Common stock is $60,000,000 and the balance is retained earnings. The firm has $255,000,000 in total assets and 5 percent of this value is in cash. Earnings for the year are $27,000,000 a..
Appropriate critical elements : How do you think the use of JIT and/or automation in the successful companies has addressed the 12 critical elements identified in Chapter 1, Key Elements of Total Quality? Be specific when referring to the appropriate critical elements and give e..
How talent management strategy can proactively attract work : Considering the vast number of diverse groups represented in the workforce, create a brief research agenda that addresses how talent management strategy can proactively attract a diverse workforce.The course has covered a wide variety of talent m..
What must expected return on the market be : A stock has an expected return of 11.6 percent, its beta is .91, and the risk-free rate is 5.8 percent. What must the expected return on the market be?
Best for promoting continual improvement : What approach do you think is best for promoting continual improvement, and why? Be as specific as possible in explaining your choice of approach and include relevant theory, and/or examples, as appropriate.
List the project team members and stakeholders : List the project team members and stakeholders (at least 4) that can be utilized to assist in identifying risks. What risk identification techniques will you utilize, and why do you believe that these will work best for your Key Assignment project
Risk-free rate and the market risk premium : Laphroaig Distillery is a producer of fine Scottish spirits. There are 34 million shares, each selling at $50/share with a Beta of 1.43. The risk-free rate is 5% and the market risk premium is 9%. There is $6 billion in outstanding debt (face value),..
Developments in the role of executive branch : Based on current administration, how do you foresee new developments in the role of executive branch?

Reviews

Write a Review

Financial Management Questions & Answers

  Next annual dividend

Zellar’s, Inc. has announced that that their next annual dividend has been set at $3.50 per share. Also, the company announced that all future dividends will increase by 5.5 percent annually. What is the maximum amount you should pay to purchase a sh..

  About the what is the firms net float

Tanner Tavern writes four checks a day for an average amount of $5,400 each. These checks generally clear the bank four days after they are written. In addition, the firm generally receives and deposits checks amounting to $18,700 each day. All depos..

  What is the required return on the company stock

Mitchell, Inc., is expected to maintain a constant 5.85 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.35 percent, what is the required return on the company’s stock?

  Coca-cola project analysis

Coca-Cola is considering jumping on the pomegranate bandwagon by producing Poma-Cola and Pomegranate Sprite carbonated beverages in 2016 (t=1). New production equipment and facilities costing $30 million will be required in 2015 (t =0) and fall into ..

  The yield to maturity when you purchased the bond

One year ago you bought a 10% coupon (paid semi-annually) bond with a face value of $1,000 and ten years to maturity. The yield to maturity (nominal, compounded semi- annually) when you purchased the bond was 8%. Today the nominal yield to maturity i..

  Additional educational years or the time value of money

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. Without considering the additional educational years or the..

  Expansion project-requires an initial fixed asset investment

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.64 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  What is the price of the bond you want to buy

What is the fair price of a 2-year $100,000 T-note with no coupon payment if the current market interest rate is 5%? If you obtain a 30 year mortgage loan of $200,000, find your monthly payment if annual interest rate is 3%, 5%, 10%. You want to buy ..

  Accumulated depreciation-funded depreciation

Based upon following information, how much debt financing (as a %) would be required to finance the replacement of fully depreciated Property, Plant, and equipment (P.P.&E.)?

  Economic forecasting staff has developed probability

Merrill Finch's economic forecasting staff has developed probability estimates for the state of the economy, and its security analysts have developed a sophisticated computer program, which was used to estimate the rate of return on each alternative ..

  What is the profit margin

A firm has a retention ratio of 40 percent and a sustainable growth rate of 7.60 percent. The capital intensity ratio is 1.46 and the debt-equity ratio is .75. What is the profit margin?

  Implied personal tax rate on debt income

Assume that the firm's gain from leverage according to the Miller model is $126,667. If the effective personal tax rate on stock income is TS = 20%, what is the implied personal tax rate on debt income? If the following is true:

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