User Account

All Pages

Determining the rate of return on the stock

Assignment Help Finance Basics
Reference no: EM132651256

A stock with a beta of 2.0 has an expected rate of return of 21%. If the market return this year turns out to be 8 percentage points below expectations, what is your best guess as to the rate of return on the stock?

Reference no: EM132651256

Questions Cloud

What is a benefit of qualitative risk assessment : What is a benefit of qualitative risk assessment
Discuss the relevant theory for findings of market reaction : Discuss the relevant theory for the findings of the market reaction to dividend changes. In your discussion, include signalling hypothesis, free cash flow
Find out the consumption of electricity : A utility company in a western city of the United States expects the consumption of electricity to increase by 11%/year
Calculate ABC Company total assets at May : ABC Company entered into the following transactions during May, its first month of operations: Calculate ABC Company total assets at May 31
Determining the rate of return on the stock : A stock with a beta of 2.0 has an expected rate of return of 21%. If the market return this year turns out to be 8 percentage points below expectations
Briefly discuss the term optimal capital structure : Briefly discuss the term "Optimal Capital Structure". Does your company have an optimal debt/equity ratio? Use calculations on business risk in your analysis
Calculate the npv of the fcf associated with alternative : ?Beryl's Iced Tea currently rents a bottling machine for $51,000 per? year, including all maintenance expenses. It is considering purchasing
Analyse marketing issues and strategies : Analyse marketing issues and strategies using core marketing concepts and work with others to develop marketing strategies
Arithmetic average return on the company stock : You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 4 percent, -13 percent, 29 percent, 20 percent, and 16 percent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Famas llamas has a weighted average cost of capital of 96

famas llamas has a weighted average cost of capital of 9.6 percent. the companys cost of equity is 12 percent and its

  Find the force and location of the force acting on window

Glass viewing windows are to be installed in an aquarium. Each window is to be 0.6 m in diameter and to be centered 2 m below the surface level. Find the force and location of the force acting on the window.

  Calculate the earnings after taxes

Ag Silver mining, corporation has$500,000 of EBIT at the year end. Interest expenses for the year were $10,000. The firm expects to distribute $100,000 in dividends.

  What is the maximum initial cost the company would pay

Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.7 million at the end of the first year, and these savings will.

  What is the amount of the interest for the third year

Payments are to be made annually. What is the amount of the interest for the third year of the loan?

  What will be the firm quick ratio

How much can a company's short-term debt(notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio after Nelson has raise the maximum amount of short-term funds?

  Explain difference between discount loans and fed funds

Compare checking deposit, savings deposit, time deposits, and certificates of deposit. Discuss the difference between discount loans and fed funds.

  Name 3 or more systematic or unsystematic risks

Name 3 or more systematic or unsystematic risks a company might face

  Explain what is the slope of the security market line

A stock has beta of 1.37 and expected return of 16.6%. THe risk free rate is 4.8%. What is the slope of the security market line?

  What should the current rate be on 2year treasury securities

If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities?

  What rate of return will the firm make on the investment

Switching to water base technology will reduce the emission of volatile organic carbons (voc for firm's production process.

  Binomial option pricing model-black-scholes option pricing

If the Exchange rate is $0.66/DM, the strike price of a call option expiring in 3 months is $0.70/DM and the option premium is $0.06/DM, What is the intrinsic value of the option? Does it have a time value? Explain?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd