What must the expected return on market be

Assignment Help Financial Management

Reference no: EM132044346

A stock has an expected return of 12.6 percent, its beta is 1.30, and the risk-free rate is 2.5 percent. What must the expected return on the market be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM132044346

Questions Cloud

What is its after-tax WACC : Assume the risk-free rate is 1.9%, the market risk premium is 7% and AllCity's tax rate is 35%. What is its after-tax WACC?

What is the return on equity and equity multiplier : What is the equity multiplier? What is the return on equity?

What would be cost of new equity : New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of new equity?

What is your year one after tax cash flow : What is your year one after tax cash flow? What is your inital cash flow?

What must the expected return on market be : A stock has an expected return of 12.6 percent, its beta is 1.30, and the risk-free rate is 2.5 percent. What must the expected return on the market be?

Estimate of callahan cost of common equity : If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity?

Home mortgage financing options : Mr. and Mrs. Cally are in the process of buying a home for $240,000 and are considering the following home mortgage financing options:

What will be the call’s value if the stock price : What will be the call’s value if the stock price is $104 in one year? What will be the call’s value if the stock price is $8 in one year?

Calculate the total cash flow for each year of the project : Calculate the Total Cash Flow for each year of the project. Calculate the Initial Investment of the project, and the Terminal Cash Flow of the project.

User Account

All Pages