Compute the expected return

Assignment Help Financial Management

Reference no: EM131558869

Given the following information please compute the expected return for Rocco & Co.:

20 year treasury yield = 4%

20 year AA corporate bond yield = 5.5%

5 year weekly beta for Rocco & co. Stock = 1.30

projected long term market return (s&p 500 index) - 9%

Last 12 month change in the s&p 500 index = 7%

Reference no: EM131558869

Questions Cloud

Statements concerning ira rollovers : Which of the following statements concerning IRA rollovers is (are) correct?

Standard mix of debt and equity at firm weighted average : it will be funded with Morningside’s standard mix of debt and equity at the firm’s weighted average (after-tax) cost of capital of 9%.

Control premium percentage and total transaction value : MSC’s stock drops to $25. At that point, what is the control premium percentage and total transaction value?

Best reflects the solvency of prospective client : Which of the following ratios best reflects the solvency of a prospective client who has applied for a loan?

Compute the expected return : Given the following information please compute the expected return for Rocco & Co.

What will be its optimal cash return point : HotFoot Shoes would like to maintain its cash account at a minimum level of $31,000, What will be its optimal cash return point?

What price does dividend growth model suggest : What price does the dividend growth model suggest, and do you agree or disagree with the brokers opinion?

What was roccos net rate of return on investment : On january 20,2014 rocco bought on margin 200 shares of Balboa Corp. for $60.00 a share. what was Rocco's net rate of return on investment?

Assume the tax rates and ordinary income : Assume the following tax rates: ordinary income = 40%; long term capital gains 20%; short term capital gains 40%; dividends 20%

User Account

All Pages