Determine the required rate of return on the stock

Assignment Help Finance Basics
Reference no: EM13280209

Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the stock.

Reference no: EM13280209

Questions Cloud

What is the average accounting return : The projected net income from the project is $1,200, $2,300, and $1,800 a year for the next 3 years, respectively. What is the average accounting return?
State what is the ratio of the population of nuclei oriented : what is the ratio of the population of nuclei oriented opposite the magnetic field with respect to those oriented with the magnetic field at 25°C
Find if impulse response of system is absolute integrable : Find the poles and zeros of H(s) and plot them in the s-plane. Find then the corresponding impulse response h(t). Determine if the impulse response of this system is absolutely integrable so that the system is BIBO stable.
Which is the better for the firm : Which is the better for the firm? The discount rate is 8% and the tax rate is zero.
Determine the required rate of return on the stock : Elephant Company common stock has a beta of 1.2. The risk-free rate is 6% and the expected market rate of return is 12%. Determine the required rate of return on the stock.
How many cores should specify for the program to use : Wanting to make optimal use of this shared resource, you make some measurements to determine how many cores your simulation can effectively use. You find that one run of your program takes 36 hours to run on 2 cores and 15 hours to run on 8 cores.
Which type of risk declines : Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, which type of risk declines?
What is the wooden block acceleration : A wooden block of mass 2kg, initially stationary is dragged by a force F with magnitude 20 N along a frictionless incline with an angle 0=30 degrees, What is the wooden block acceleration
Write down the line of instruction which set the atd1 unit : Given an 24 MHz bus speed. Write down the line(s) of instruction which set the ATD1 unit for 2MHz conversion frequency, 10-bit resolution and 8 A-to-D clocks per sample time.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the probability that we get our license

what is the probability that we get our license and the casino will be commercially viable?

  Explain evaluation of investment proposal by profitability

Explain Evaluation of Investment proposal through Profitability Index and Rank the proposals in terms of preference using the project profitability index

  What is krell dividend yield and equity cost of capital

Krell industries has a share price of $21.72 today. If Krell is expected to pay a dividend of $1.12 this year and its stock price is expected to grow to $24.58 at the end of the year, what is Krell's dividend yield and equity cost of capital?

  What should the big mac sell for in iceland

According to purchasing power parity, if a Big Mac sells for $3.29 in the United States and the exchange rate for the Iceland kronur is 117.51 kronur/$, what should the Big Mac sell for in Iceland?

  Question on amortization schedule

I need to set up the amortization schedule for $25,000 loan to be repaid in equal installments at the end of next 5 years. The interest rate is 10% compounded annually.

  Determine the total income the company

Determine the total income the company must get its sales to cover the Total Fixed Cost, Total Variable Costs and the expected gain.

  Find the future value of bond

Kate Greenway company, having recently issued a $20,113,000, 15 year bond issue, is committed to make yearly sinking fund deposits of $610,000.

  Pvs of cash flow

To find out the present value of uneven series of cash flows, you may find out the PVs of the individual cash flows and then sum them. Annuity procedures can never be of use, even if some of the cash flows constitute an annuity

  Should the fritz corporation invest in this new project

According to our statistical estimates, Fritz's believes that the rate of return on the project will be 13 percent. Should the Fritz Corporation invest in this new project?

  Basic types of securities issued by corporations

Illustrate out the three basic types of securities which are issued by corporations? Put in plain words the key rights for common stock ownership and how these rights benefit the shareholders.

  Calculate the borrowing amount

The treasurer for Brookdale Clothing must decide how much money the corporation requires to borrow in July. The balance sheet for June 30, 2004 is given below:

  Relevant and irrelevant costs

An airline is planning a new promotional campaign to attract college students by offering them the right to fly stand-by at low rates when seats are not otherwise filled.

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