Find that lauryn has a reported equity beta

Assignment Help Financial Management

Reference no: EM131308884

You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.4, a debt-to-equity ratio of 0.4, and a tax rate of 40 percent. Based on this information, what is Lauryn’s asset beta? (Round your answer to 2 decimal places.)

Reference no: EM131308884

Questions Cloud

What is your profit? from these transactions : Last year you sold short 400 shares of stock selling at ?$71.75per share. Six months later the stock had fallen to ?$33.82 per share. Over the? six-month period the company paid out two dividends of ?$1.89 per share. Your total commission cost for se..

What are strength for current and future of given app : What are strength for current and future of app (application to be used for smart phone like devices) in term of development. At least 2 paragraph with two in-text reference.

Future technology and future increase in costs : The information technology department has recently completed a major refurbishment and upgrade of the city's data center, at a cost of $10,145,825. The chief information officer (CIO) has informed the central budget office that the IT department will..

Design a test methodology for the sungrafix network : Designing Test Methodology for the SunGrafix Network? Reports on incident response and escalation procedures, with information on updating the security policy for employees, management, and network administration.

Find that lauryn has a reported equity beta : You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.4, a debt-to-equity ratio of 0.4, and a tax rate of 40 percent. Based on this information, what is La..

Develop personal and household savings plan : Develop a personal and household savings plan. What savings strategies will you use to improve your financial situation? Explain why you chose each strategy instead of others that you did not choose. How much will you save each month? How much intere..

Write the missing number game program : Write the Missing Number Game Program. You will write a program that will allow a user to play the missing number game. The game will display a 4 (rows) x 3 (columns) board of numbers that will be predetermined

The yield to maturity of this bond is unchanged : A ten years maturity bond with a coupon rate of 6% is now selling at $977.22. What would be the current yield and capital gain yield for this bond in one year from now assuming the yield to maturity of this bond is unchanged?

Why is it difficult to measure probability of stock falling : Suppose you are in charge of risk management at a large mutual fund. A portfolio manager is considering purchasing a large number of shares in a particular stock. The company whose stock she is considering has only been around for 5 years. Why is it ..

User Account

All Pages