Calculate the stock beta

Assignment Help Finance Basics
Reference no: EM131721792

Assume this information: risk free rate=5%; market premium=10%, and required rate of return on sin corps stock is 12%.

a. Calculate the stock beta.

b. If the stock beta were 2.0, what then would be required rate of return?

Reference no: EM131721792

Questions Cloud

Compute the net forward premium on the yen : Spot exchange rate is 100yen/$, and 180-day forward exchange rate is 110yen/$. Compute the net forward premium on the yen, in annual percentage.
Explain how the modernists changed the content of literature : Explain how the modernists changed the content of literature (e.g. form, subjects, etc.) with their new way of writing.
What is the required return on the riskier stock : Stock c has a beta of 1.5. Stock D has a beta of 0.75. The expected rate of return on an average stock is 13%, and the risk free rate is 7%.
What is association projected pooled-funds marginal cost : Aspiration Savings Association is considering finding a package of new loans in the amount of $400 million. Aspiration has projected that it must raise $450.
Calculate the stock beta : Assume this information: risk free rate=5%; market premium=10%, and required rate of return on sin corps stock is 12%.
What is the break-even point in sale dollars : Assume that sales are predicted to be $3800, the expected contribution margin is $1558, What is the break-even point in sale dollars
Discuss link state and distance vector routing types : Write essay on several examples of link state and distance vector routing types
Typically responsible within the individual departments : For which aspects of the budget is a department-level manager typically responsible within the individual departments?
What is monarch overall historical wacc : Monarch Bank and Trust has received $800 million in total funding, consisting of $200 million in checkable deposit accounts, $400 million in time and savings.

Reviews

Write a Review

Finance Basics Questions & Answers

  Consider a project with free cash flows

Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital..

  The company expects to earn 15 percent before interest and

the calgary company is attempting to establish a current assets policy. fixed assets are 600000 and the firm plans to

  Consider the following condensed income statement if cogs

consider the following condensed income statement2004sales 8000000cogs 6500000gross profit 1500000sales growth in 2005

  Healthcare organizations millions of dollars

All healthcare organizations must convert to an Electronic Health Record (EHR) system within the next year. This is a major capital expense that will cost many healthcare organizations millions of dollars.

  Calculations required to evaluate forrester''s proposed

which would increase to 300,000 units per year. Forrester requires a 12% return on investments. Show all necessary calculations required to evaluate Forrester's proposed relaxation of credit standards.

  Use synthesized attributes to determine

Let synthesized attribute val give the value of the binary number generated by S in the following grammar. For example, on input 101.101. S.val = 5.625

  Select a real-world marketing issue

For the project, each student should select a real-world marketing issue in which consumer behavior plays a critical role (some examples are listed below). This issue can be one that a company or organization that you have access to is grappling with..

  What amount would be recorded in the paid-in capital account

If a firm issues 10,000 shares of common stock with a par value of $5 and for a sales price of $15, what amount would be recorded in the paid-in capital account?

  Calculate the debt ratio and time interest earned

Laurel Street, president of Uvalde Manufacturing Corporation is planning a proposal to present to her board of directors regarding a planned plant expansion that will expense $10 million.

  Chase and janet fisher

Chase Fisher (age 54) is a small business owner. He and his wife, Janet, (age 53) have the following assets:

  What are the key motives for making capital expenditures

What are the key motives for making capital expenditures? Discuss, compare, and contrast them.

  What is the value of a share of stock of hov inc

What is the value of a share of stock of HOV Inc. to an investor who requires a 12 percent rate of return if HOV's current dividend is $1.20? Assume earnings and dividends are expected to grow at a compound annual rate of 7 percent.

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