Compute the return the firm should earn given level of risk

Assignment Help Finance Basics
Reference no: EM13262927

A manager believes his firm will earn a 13.00 percent return next year. His firm has a beta of 1.52, the expected return on the market is 10.00 percent, and the risk-free rate is 5.00 percent. Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.) Required return %

Reference no: EM13262927

Questions Cloud

Contemporary design firms you will notice global environment : When reviewing contemporary design firms you will notice a global environment - architectural and interior design was derived from US, British, French, and German firms.
What is expected annual growth rate of the company : a company has stock which costs 42.00 per share and pays a dividend of 2.50 per share this year. the company's cost of equity is 8%. what is expected annual growth rate of the company's dividends?
What is the identification number of the packet : An IPv4 datagram has arrived with the following information in the header (in hexadecimal): Ox45 00 00 54 00 03 58 50 20 06 00 00 7C 4E 03 02 B4 OE OF 02 a. Is the packet corrupted b. Are there any options
Compute the width of the central maximum : Light of wavelength 560 nm illuminates a single 0.77 mm wide slit. At what distance from the slit should a screen be placed, What is the width of the central maximum
Compute the return the firm should earn given level of risk : Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.) Required return %
Human error and how hfacs : Define human error, and explain the HFACS method used to classify human error and how HFACS can be both reactive and proactive.
Determine the complex power drawn by each impedance : A circuit consist of two impedance,Z1=50/_45 ohms and Z2=25/_30 ohms, connected in parallel. They are supplied by a source whose voltage is V=50/_0 volts. Determined follows 1. the current drwan by each impedance
How much heat energy is exhausted into the room : 250mL of water at 20.0 ?C is placed in the freezer compartment of a refrigerator with a coefficient of performance of 6.00. How much heat energy is exhausted into the room
Business model design and innovation : What role should external factors of demand play in successful business models? NOTE: first fully define the role and then analyze or discuss. What are the challenges to “Business Model Design and Innovation?

Reviews

Write a Review

Finance Basics Questions & Answers

  How much money will you invest in stock x and stock y?

You have $12,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 10 percent. Assume your goal is to create a portfolio with an expected return of 12.30 percent.

  Calculate company total asset turnover

Calculate company total asset turnover

  Describe a wacc

Describe a WACC and describe your reasoning within the context of the models discussed in class

  Unique risks associated with foreign investments

What are unique risks associated with foreign investments? How might an investor protect his/her portfolio against these risks? Is it possible to protect a portfolio from all types of risk? Explain your answer.

  Prepare a graph to show behavior of maintenance costs

The controller of Dugan corporations has collected the following monthly expense information for use in analyzing the cost behavior of maintenance costs.

  Give preparation of common size statement for financial

Give Preparation of common size statement for financial analysis and what is causing this drop in net income

  Determining real and nominal gdp

Research and identify the current levels of the real and nominal GDP, unemployment rate, the inflation rate and the key interest rate. Relate these variables to the current state of the economy.

  What are the portfolio weights

Considering the effects of diversification, how should Sarah respond to the suggestion that you invest 100 percent of your 401(k) account in East Coast Yachts stock?

  Calculation of pv of future annuity payments with pv tables

Calculation of PV of future annuity payments with PV tables and what is the current value of the future payments

  Show the marginal cost of capital schedule

Explain how many break points are thre in the marginal cost of capital schedule

  Decreasing medical expenses

Phillip developed hip problems and was unable to climb the stairs to reach his 2nd floor bedroom. His physician advised him to add a first-floor bedroom to his home.

  Calculate expected return using capm

Estimate of beta for British Petroleum. Please consider examining or using an industry average beta, especially if the reported beta you find seems unrealistic or inappropriate.

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