Market risk premium and real risk-free rate

Assignment Help Financial Management

Reference no: EM13769162

Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.3% rate of inflation in the future. The real risk-free rate is 1%, and the market risk premium is 4%. Manning has a beta of 1.9, and its realized rate of return has averaged 12.5% over the last 5 years. Round your answer to two decimal places.

Reference no: EM13769162

Questions Cloud

What is the price of a perpetual bond with a par value : What is the price of a perpetual bond with a par value of $1,000.00 and a coupon rate of 7.25% (semi annual coupon)? The bond has a nominal yield to maturity of 6.90%.

Epidemiology concept issue : Which of the following examples involves indirect transmission of disease?

Environmental-awareness journal : Your assignment is to take a "field trip": a nature walk, a tour around your neighborhood, a bicycle ride, a trip to the city, or any kind of journey by any mode of transportation, that gets you out into your environment.

What is the effect of professional ache standards : What is the effect of professional ACHE standards on your ethical decision making

Market risk premium and real risk-free rate : Calculate the required rate of return for Manning Enterprises assuming that investors expect a 4.3% rate of inflation in the future. The real risk-free rate is 1%, and the market risk premium is 4%. Manning has a beta of 1.9, and its realized rate of..

Write a java sorting application with two classes : Write a Java Sorting Application with two classes, JavaSort and JavaSortTest. Your JavaSort Class, as a minimum must contain sorting methods for BubbleSort, InsertionSort, ShellSort, MergeSort, and QuickSort.

Pros and cons of corporations vs partnerships : Finally, in addition to reviewing the attached links, please write a one-page(single space) summary listing pros and cons of corporations vs. partnerships

Explain a book summary of the three signs of a miserable job : Write a book summary of The Three Signs of a Miserable Job: A Fable for Managers (And Their Employees) by Patrick Lencioni.

Determine the beta coefficient : Given the following information, determine the beta coefficient for Stock J that is consistent with equilibrium: rJ = 14.5%; rRF = 6.75%; rM = 8%. Bradford Manufacturing Company has a beta of 1.8, while Farley Industries has a beta of 0.55. The requi..

User Account

All Pages