What must the expected return on stock

Assignment Help Financial Management
Reference no: EM131524912

A stock has a beta of 0.9, the expected return on the market is 13 percent, and the risk-free rate is 7.15 percent. What must the expected return on this stock be?

Reference no: EM131524912

Questions Cloud

What is the loan amount and what is the debt yield : What is the value? What is the loan amount? What is the Debt Yield? What is the DSCR?
Planning to save up for a trip to europe in three years : Mighty Mike is planning to save up for a trip to Europe in three years.
Create a portfolio with an expected return : If your goal is to create a portfolio with an expected return of 11.3 percent, how much money will you invest in Stock X?
What is portfolio beta : The betas for these four stocks are 0.86, 1.19, 1.03, and 1.21, respectively. What is the portfolio beta?
What must the expected return on stock : A stock has a beta of 0.9, the expected return on the market is 13 percent, and the risk-free rate is 7.15 percent. What must the expected return on this stock
Determine the present value of the contract : determine the Present Value of the contract.
What is the portfolio weight for stock : What is the portfolio weight for stock A and stock B, respectively?
What is weighted average cost of capital : If all non-Debt financing costs 20%, what is the Weighted Average Cost of Capital (WACC) for Firm H ?
What impact does the impairment of goodwill : What impact does the impairment of goodwill have on Zarto Inc’s financial statements?

Reviews

Write a Review

Financial Management Questions & Answers

  The expected return on parador stock

The current price of Parador Industries stock is $47 per share. Current earnings per share are $5, the earnings growth rate is 7 percent, and Parador does not pay a dividend. The expected return on Parador stock is 19 percent.

  Calculate the eac for both conveyor belt systems

Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $236,000, has a four-year life, and requires $74,000 in pretax annual operating costs. Assume the tax rate is 30 percent and the di..

  What is the value of your investment five years from today

You deposit $225 into an account which pays 6.5% per year for two years. However, the rate of interest drops to 3.5% thereafter. What is the value of your investment five years from today (assuming annual compounding)?

  What is the npv of accepting the system

No More Books Corporation has an agreement with Floyd Bank whereby the bank handles $7.0 million in collections a day and requires a $450,000 compensating balance. No More Books is contemplating canceling the agreement and dividing its eastern region..

  Determine the equivalent uniform annual cost for the truck

A fleet manager must choose between two trucks to purchase for a company's fleet. The company uses an interest rate of 7% and will keep either truck for 5 years. Truck A costs $29,000 and has a market value of $17,000 after 5 years. Truck B costs $32..

  Useful for estimating stock intrinsic value

The dividend growth model is only useful for estimating a stock’s intrinsic value when the

  Compute the standard deviation

The past five monthly returns for PG&E are −3.45 percent, 4.58 percent, 4.05 percent, 6.89 percent, and 3.86 percent. Compute the standard deviation of PG&E’s monthly returns. (Do not round intermediate calculations and round your final answer to 2 d..

  Share repurchase affect the value of the company

lectronic Timing, Inc. (ETI), is a small company founded 15 years ago by electronics engineers Tom Miller and Jessica Kerr. How will this proposal affect the stock price? How will it affect the value of the company? How will a share repurchase affect..

  Calculate accounting-cash-financial break-even quantities

This problem concerns the effect of taxes on the various break-even measures. Consider a project to supply Detroit with 25,000 tons of machine screws annually for automobile production. Calculate the accounting, cash, and financial break-even quantit..

  Find the modified internal rate of return

Find the Modified Internal Rate of Return (MIRR) for the following series of future cash flows, given a discount rate of 11%: Year 0: -$22,000; Year 1: $5,000; Year 2: $6,000; Year 3: $7,000; Year 4: $7,500; and, Year 5: $8,000.

  Evaluating proposed capital budgeting project

Sunclair is evaluating a proposed Capital budgeting project that will require an initial investment of $3,225.

  Consumer demand for products-industrial for raw material

Trek Bicycle began by manufacturing high-quality,The relationship between consumer demand for products and industrial demand for raw materials is known

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