Calculate the stock price of the company

Assignment Help Managerial Accounting
Reference no: EM132858925

Question - You are an analyst with a leading equity research firm. You have the following data: Next year Roll Steel Ltd. Is expected to pay 80% dividend. You found that the, YTM of 10-year government bond is 7.8%. The market return is likely to be 250 basis point over and above the government bond yield. Calculate the stock price of the company, if the variance of the market is 0.45. You found that the covariance of the market and the stock is 0.65.

Reference no: EM132858925

Questions Cloud

How contract should be accounting for by albert : Provide journal entries (if any) required on: 1 June 2021; 1 July 2021 and 30 June 2022. If you record no entry on these dates explain why.
Prepare journal entries for the year ended june : Prepare journal entries for the year ended 30 June 2022 assuming that control for the tunnel transfers to the customer in line with the stage of completion.
Discuss the appropriate accounting treatment : Discuss the appropriate accounting treatment. A publishing company commenced the internal development of a new magazine in 2018.
Provide all necessary entries to record the events : Provide all necessary entries to record the events during the 2021/22 financial year. Camenzuli and Family Ltd operates a rabbit farm on the outskirts.
Calculate the stock price of the company : Calculate the stock price of the company, if the variance of the market is 0.45. You found that the covariance of the market and the stock is 0.65
What value should place on opportunity today : If his opportunity cost is 7% compounded annually, what value should he place on this opportunity today? Jim Nance has been offered an investment that will pay
GEOG 2700 Geographical Data and Analysis Assignment : GEOG 2700 Geographical Data and Analysis Assignment Help and Solution, University of Lethbridge - Assessment Writing Service
How large an equal deposit must be made each year : How large an equal, annual, end-of-year deposit must be made each year into an account paying an annual interest rate of 10% for Donovan to have the cash
How many performance obligations are there for Company : Aircraft also agreed to maintain the planes in the amount of P60 million for three years. How many performance obligations are there for Aircraft Company

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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