Calculate the required return on king farm

Assignment Help Finance Basics
Reference no: EM131890553

King Farm Manufacturing Company's common stock has a beta of 2.46. If the risk-free rate is 3.32 percent, and the market return is 8.15 percent, calculate the required return on King Farm Manufacturing's common stock.

Reference no: EM131890553

Questions Cloud

What are the portfolio weights of stock : An investor owns $19,000 of Adobe Systems stock, $22,000 of Dow Chemical, and $32,000 of Office Depot. What are the portfolio weights of each stock?
How did the rise of cities capitalism create tensions : How did the rise of cities and industrial capitalism create tensions over social class? How did popular culture attempt to use race to mediate class tensions?
Capm required return : If the market return is expected to be 11.8 percent and the risk-free rate is 3.90 percent, what is the company's required return?
What are the portfolio weights of each stock : If you own 745 shares of Air Line Inc at $43.1, 360 shares of BuyRite at $56.35, and 460 shares of Motor City at $10.3, what are the portfolio weights
Calculate the required return on king farm : If the risk-free rate is 3.32 percent, and the market return is 8.15 percent, calculate the required return on King Farm Manufacturing's common stock.
Calculate the bond price today : Market interest rates on similar bonds are 12.62 percent. Calculate the bond's price today.
What is the firm self-supporting growth rate : The company distributed $1.60 million as dividends to its shareholders last year. What is the firm's self-supporting growth rate?
How did participation in the war change position of women : How did participation in the war change the position of women, African-Americans, and immigrant communities in American society?
What would the return on sales for the product line be : Under that option, shipment would be delayed and about one third of the years sales of 6,000,000 units would be lost - After the six months the variable cost

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the checks and balances in the design process

What is included in the establishment of a "functional" baseline? "allocated" baseline? "product" baseline? Why is baseline management important?

  Standard deviation of stock returns for stock

The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market is 20%. If the correlation between Stock A and the market is 0.70, then what is Stock A's beta?

  Monthly payments for four years

You are looking to buy a car. You can afford $430 in monthly payments for four years. In addition to the loan, you can make a $1,200 down payment. If interest rates are 7.50 percent APR, what price of car can you afford? (Do not round intermediate..

  Bonds-sinking funds

Gordon company issued $1,000,000 10 year bonds and agreed to make annual sinking fund deposits of $80,000.00. What amount will be in sinking fund at the end of ten years?

  Reasons for alternative of buying a call at higher price

Explain the advantages and disadvantages to a call buyer of closing out a position prior to expiration rather than holding it all the way until expiration?

  Define and discuss the term equity

Define and discuss the term "equity". What financial statement element other than equity is typically affected by owner investments and distributions?

  Which one of the following is the best example of sunk cost

Which one of the following is the best example of a sunk cost?

  The latest forecast for the future

Choose one financial topic (i.e., Stocks, Bonds, US Economy, Oil, China Economy, Interest Rates, Foreign Currencies, Japan Economy, Precious Metals, European Economy, etc.) and answer the following questions:

  Discuss the process of cash flow estimation

Project C has NPV of $80,000 and it will take 4 years complete and it will cost $40,000.Based on the information, which project would you pick?

  A local retailer of pet food faces demand for one of its

1. pet food inc. a local retailer of pet food faces demand for one of its items at a constant rate of 30000 bags per

  Acs industries is considering a project with an initial

acs industries is considering a project with an initial cost of 6.2 million. the project will produce cash inflows of

  After-tax cash flow from the sale

Consider the following values. NOIn+1: $2.8 million. Cap rate: 7.5%. Brokerage commission: 3%. Remaining mortgage balance: $12 million. Remaining book value: $14 million. Total depreciation taken: $4.9 million. Recapture tax (for depreciation take..

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