Compute the return the firm should earn given its level

Assignment Help Finance Basics
Reference no: EM131861925

A manager believes his firm will earn a 12.98 percent return next year. His firm has a beta of 1.38, the expected return on the market is 11.10 percent, and the risk-free rate is 5.10 percent.

Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)

Reference no: EM131861925

Questions Cloud

Are there any other projects that you particularly enjoy : Should Shirley accept the assignment or not? If she does accept it, what obligations does she have? Analyze.
According to the guest lecture by robert rough : According to the guest lecture by Robert Rough, the Total Available Market (TAM) would be equal to your revenue if you were able to capture 100% of the market.
What is the beta of portfolio : What is the beta of your portfolio? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
What are google goals in developing glass : Who is Glass targeting? Describe the segment(s) using demographics, psychographics and benefits segmentation.
Compute the return the firm should earn given its level : Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.)
Big corporation alleged to have committed employee theft : Identify an example of when a Small Business or Big Corporation alleged to have committed Employee Theft.
Budgeting concepts help in this decision process : Would any of the other capital budgeting concepts help in this decision process? Other thoughts?
What is the company net working capital : Working capital: Winston Electronics reported the following information at its annual meetings. The company had cash and marketable securities
Statement of retained earnings for year ended december : Prepare the statement of retained earnings for the year ended December? 31, 2012.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is global net working capital

Global com has cash of $75,000; short - term notes payable of $100,000; accounts receivable of $275,000; accounts payable of $135,000: inventories of $350,000; and accrued expenses of $75,000. What is Global's net working capital?

  What amount should be used as the initial cash flow

For the project analysis, what amount should be used as the initial cash flow for net working capital? please show all work.

  What are the standard deviations of stocks a and b

What are the expected rates of return of stocks A and B? What are the standard deviations of stocks A and B? . What is the coefficient of correlation between A and B if the covariance is -0.000063

  Financial perspective-customer perspective-process

Question 1: in reference to Financial Perspective you have: Financial perspective, Customer perspective, Process prospective and Innovation prospective. Please provide an example of a company that has placed disproportionate emphasis on the financ..

  Calculate the strategic npv

a) Use the information provided to calculate the strategic NPV, NPV strategic , for Asor Products' proposed equipment expenditure. b) Judging on the basis of the findings in part a, what action should jenny recommend to management with regard to ..

  Taxpayers comply with the new tax code

The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues (in thousands) will vary with how well taxpayers comply with the new tax code.

  Hard-pressed airlines move to cut capacity

Hard-pressed airlines move to cut capacity, The Financial Times; Published in May, 2, 2011.

  Which company uses more financial leverage

Consider two companies, each with a return on assets of 10%. Company X has a return on equity of 15%, and Company Y has a return on equity of 20%. Which company uses more financial leverage? Explain.

  What is meant by cost-estimating relationships

In the evaluation of alternative design configurations, an individual cost profile is developed for each. These individual profiles must be reviewed and evaluated in terms of some form of "equivalence." Briefly describe the steps you would follow ..

  The next dividend payment by ecy

The next dividend payment by ECY, Inc will be $3.20 per share. The dividends are anticipated to maintain a growth rate of 6 percent, forever.If ECY stock currently sells for $63.50 per share, what is the required return?

  Compute of operating cash flows at various criteria

Compute of operating cash flows at various criteria and calculate operating cash flow using the four different approaches

  Mortgage information during the credit crisis

Mortgage Information during the Credit Crisis: - Explain why mortgage originators have been criticized for their behavior during the credit crisis.

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