Calculate the required rate of return

Assignment Help Financial Accounting
Reference no: EM133008321

Question - The mathematical expectation of market profitability is 4%. The risk-free asset rate is 7% and risk premium of the market = -0.73163. Calculate the required rate of return (by shareholders).

Reference no: EM133008321

Questions Cloud

Compute for the amortization of premium related to debenture : Compute for the amortization of Premium/Discount related to Debenture Bonds for the year 2021.
Find a compensation plan on the internet : -Find a compensation plan on the internet to evaluate - include URL and/or attachment of document to your posting - indicate why you want to review this plan.
What is a financial intermediary : What is a financial intermediary? Why have these institutions been steadily losing market share to capital markets as the principal source of external financing
Compute for the carrying value of the investment in bonds : Compute for the Carrying Value of the Investment in bonds as of December 31, 2020. On October 1, 2020, SMH Corporation acquired debt securities
Calculate the required rate of return : The risk-free asset rate is 7% and risk premium of the market = -0.73163. Calculate the required rate of return (by shareholders)
Testimony unnecessary in medical malpractice : In what circumstances is expert testimony unnecessary in medical malpractice?
Explain the steps in strategic management process : Explain the steps in strategic management process when applied to healthcare organization?
Compute for the effective rate applicable to debenture bonds : Compute for the effective rate applicable to the Debenture Bonds. On October 1, 2020, SMH Corporation acquired debt securities paying
Measure performance in service organization : Which of the following could not be used to measure performance in service organization

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute what cost of common equity from reinvested earnings

You have been provided, Based on the Capital Asset Pricing Model (CAPM) approach, what is the cost of common equity from reinvested earnings?

  Calculate the cost of goods sold for the company

A quick ratio of 0.91, an inventory turnover of 7, and a current ratio of 2.1. Calculate the cost of goods sold for the company. Round to 2 decimals.

  What is a capital expenditure

What is a capital expenditure (CAPEX)? If money were no object, what is one thing that you would include on your CAPEX budget

  Changed from straight-line to DDB depreciation

Our company changed from straight-line to DDB depreciation. Which does the journal entry to record the change include?

  Reported profit for tax purpose in regard to the item

A fully franked cash divident of 21009 was received from ABC finance pyt ltd. An amount of 57000 was paid on 1 march 2016 for two years rental of storage space. the lease expires on 28 February 2018.in company account 9500 was expensed and 47500 was ..

  What is the probability that randomly monitored calls

The manager of a help desk operation has concluded, What is the probability that two randomly monitored calls will each be completed in 2 minutes or less?

  Find the operating break even point in number of CD

If Barry estimates that at a minimum he can sell 2,000 CDs per month, should he go into music business? Find the operating break even point in number of CDs

  How much is the total carrying amount of the capitalized

How much is the total carrying amount of the capitalized intangible assets at year-end? K Co. incurred 100,000 additional costs in maintaining customer lists.

  What show the average cost per unit

Find If the company uses the weighted-average inventory cost flow method, show the average cost per unit. The inventory records for Radford Co. reflected

  Find How much is the size of each withdrawal

How much is the size of each withdrawal? John invested $650 at the end of each six months at 5.3% compounded semi-annually.

  What was the income for the two months ended May

During May, Rabiya drew P6,000 against his capital account. What was the income for the two months ended May 31, 2014 under the following method of accounting

  Which project should Xenex accept

Project A, a riskier-than-average project, will produce annual end-of-year cash flows of $71,104. Which project should Xenex accept

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