What return should qwc ltd expect o earn

Assignment Help Finance Basics
Reference no: EM132724278

QWC Ltd. has cash of $100,000 that will be invested in an equity investment that has a beta of 2.25. The current risk-free rate in the market is 2.5%, and the market requires an 8% risk premium for equity securities. What return should QWC Ltd. expect o earn?

Reference no: EM132724278

Questions Cloud

Original mortgage balance : If interest is 8.45% compounded annually, what was the original mortgage balance?
What attributes did the chinese and japanese share : What attributes did the Chinese and Japanese share that made their ‘welcome' into American culture more problematic than that of the Irish and the Jews?
What is the bond yield to maturity : The market price is ?$1,200 for a 13?-year bond ?($1,000 par? value) that pays 9 percent annual? interest, but makes interest payments on a semiannual basis
Describe the behavior and the influencer using theory : Describe the behavior and the influencer using theory to analyze it. How might a Human Services professional help the person involved
What return should qwc ltd expect o earn : The current risk-free rate in the market is 2.5%, and the market requires an 8% risk premium for equity securities. What return should QWC Ltd. expect o earn?
Approximate value of exports : Assume the following information: U.S. deposit rate for 1 year = 11% U.S. borrowing rate for 1 year = 12%
What is culture at Vigo County Tax-Municipal Services Office : The workday begins at 8:00 a.m. in the Vigo County Tax & Municipal Services Office. What is the culture at Vigo County Tax & Municipal Services Office
What is the net amount received by the corporation : a. If the spot rate at the time of maturity is $.85, what is the net amount received by the corporation if it acts rationally?
Analyze current capital structure : Does this company pay dividend? If so, what is dividend per share? Would you like to invest in this company? If yes, then why; if not, then why not?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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