User Account

All Pages

Why do the corporate and market betas differ for the same

Assignment Help Finance Basics
Reference no: EM13479646

Suppose that Apex Health Services has four different projects. These projects are listed below, along with the amount of capital invested and estimated corporate and market betas:

Project

Amount Invested

Corporate Beta

Market Beta

Walk - In Clinic

500000

1.5

1.1

MRI Facility

2000000

1.2

1.5

Clinical Laboratory

1500000

0.9

0.8

X-ray Laboratory

1000000

0.5

1


$5000000

========

a. Why do the corporate and market betas differ for the same project?

b. What is the overall corporate beta of Apex Health Services? Is the calculated beta consistent with the corporate risk theory?

c. What is the overall market beta of Apex Health Services?

d. How does the riskiness of Apex's stock compare with the riskiness of an average stock?

e. Would stock investors require a rate of return on Apex that is greater than, less than, or the same as the return on an average stock?

Reference no: EM13479646

Questions Cloud

From a financial manager perspective please explain and : you are the financial manager of a company of your choice. you have been asked to share with a group of college interns
Examine the information requirements of the organisation or : you are required to produce a report on the subject of information systems is development and usage within national
Conduct an industry comparison in your paper discuss how : write a 750- to 1050-word paper evaluating the financial health of a company. highlight the importance of industry
These bonds make annual payments and mature nine years from : you bought one of rocky mountain manufacturing co.s 8 percent coupon bonds one year ago for 1028.50. these bonds make
Why do the corporate and market betas differ for the same : suppose that apex health services has four different projects. these projects are listed below along with the amount of
I need a request to pursue research for the topic of : i need a request to pursue research for the topic of executive function. a prepared 500-750 word letter or memo to your
The founders attitude toward government and power and what : the people who wrote the u.s. constitution the founders had definite ideas in mind in regard to power its potential for
Prepare a 1000-1250-word paper that focuses on the : research a health care organization or a network that spans several states within the u.s. example united healthcare
Write a concert review on the concert of contemporary music : write a concert review on the concert of contemporary music comala performed on yesterday. the review has to be at

Reviews

Write a Review

Finance Basics Questions & Answers

  Which of the following projects should the firm accept

However, the projects of Division A are less risky than those of Division B. Which of the following projects should the firm accept?

  What four statements are contained in most annual reports

If a "typical" firm reports $20 million of retained earning on its balance sheet, could its directors declare a $20 million cash dividend without any qualms whatsoever?

  What is the dollar amount of your federal tax liability

Imagine that your total gross income for the year is 103.6 thousand. After all the deductions and exemptions, you find that your taxable income is 84.4 thousand.

  describe a bearish pattern with the two MA lines

Assuming a stock price and volume chart that also contains a 50-day and a 200-day MA line, describe a bearish pattern with the two MA lines and discuss why it is bearish.

  What is expected annual growth rate of the company

a company has stock which costs 42.00 per share and pays a dividend of 2.50 per share this year. the company's cost of equity is 8%. what is expected annual growth rate of the company's dividends?

  Executive summary of future trends

Make a executive summary in which you recognize and discuss three to five evolving trends which influence innovation.

  Prepare the following budgets for 1 quarter broken down

1. prepare the following budgets for 1 quarter broken down monthly regarding your chosen item estimated sales budget

  Has your company made a gain or a loss

By the end of the month, it has unexpectedly dropped to 94 cents. Has your company made a gain or a loss as a result, and by how much?

  Computation of weighted average cost of capital

Computation of weighted average cost of capital and What is Jake's weighted average cost of capital

  How much will the investor receive

An investor holds a Treasury bond with a face value of $5000, a coupon rate of 4%, and semiannual payments that matures on 15/01/2012. How much will the investor receive on 15/01/2012?

  In 2011 what is the maximum amount of employee pretax

1. in 2011 what is the maximum amount of employee pretax contribution elective deferral that may be made to a

  Explain how the peg must be maintained

Further discuss the ability of central banks to manage domestic economic problems while maintaining a pegged exchange rate?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd