Market risk premium and risk-free rate

Assignment Help Business Management
Reference no: EM133146650

1. A stock just paid a dividend of $2.09. The dividend is expected to grow at 23.40% for two years and then grow at 4.52% thereafter. The required return on the stock is 12.66%. What is the value of the stock?

2. The risk-free rate is 2.28% and the market risk premium is 7.53%. A stock with a β of 0.82 will have an expected return of ____%.

3. The risk-free rate is 1.99% and the expected return on the market 10.94%. A stock with a β of 0.82 will have an expected return of ____%.

4. A stock has an expected return of 16.00%. The risk-free rate is 2.58% and the market risk premium is 8.15%. What is the β of the stock?

Reference no: EM133146650

Questions Cloud

Aggregate demand and supply : Between 2007 and 2009, the United States experienced a severe financial crisis and economic downturn commonly known as the Great Recession
Impact on profession of accounting : Given recent headlines regarding unethical behavior and its impact on the profession of accounting,
Calculate most current days of working capital : Select a company of your choice, and calculate the most current days of working capital (DWC) that are available.
Evaluation of Merger or Acquisition : Provide an introduction to the companies involved in the merger or acquisition. Include the companies' background information and the reasons for the merger.
Market risk premium and risk-free rate : The risk-free rate is 2.28% and the market risk premium is 7.53%. A stock with a ß of 0.82 will have an expected return of ____%.
Athletes are often hired to represent image of corporation : What are the pros and cons of each? Celebrities/athletes are often hired to "represent" the image of a corporation.
Have decisions contributed to the company succes : What kind of financial decisions making models does nissan motors use in its capital budgeting process?
Conduct a bcg portfolio analysis of a conglomerate : Conduct a BCG Portfolio analysis of a conglomerate and critically discuss the options for strategic decision-making. Give examples.
Capacity problems-make the various parts of facility : Fat Charlie's Restaurants is building a new burger place and needs to determine how big to make the various parts of its facility.

Reviews

Write a Review

Business Management Questions & Answers

  Way of understanding the truth

Some factors such as those shown below may get in the way of understanding the truth within the message; thus, affecting our behaviors:

  Advantages or disadvantages of new versus used aircraft

Discuss one or more of the advantages or disadvantages of new versus used aircraft.

  Appraise the complexities of leadership and practice

How did Marry T Barra and SAFRA A. CATZ leadership, contribution, employee engagement, employee empowerment

  Explain the manager of a multinational firm operating

Explain the manager of a multinational firm operating in a developing country noticed that local employees had at length recently met their physiological and safety needs

  Incident response template

Using a Web browser, search for "incident response template." Look through the first five results and choose one for further investigation.

  Examine the consumer value framework

Examine the Consumer Value Framework (CVF), including its basic components. Provide your own examples?

  Work in the marketing department

You are a data analyst assigned to work in the marketing department. Your company is in the middle of a new database development project for a business

  Practices common in australian workplaces

Identify and outline three different sustainability practices common in Australian workplaces.

  Software development methodologies

Research and find two peer reviewed academic articles that discuss software development methodologies for (medium scale) distributed information systemsprojects. Summarise, compare and contrast these articles and state whatcontribution they make t..

  Forecasting the firm financing requirements

Discuss the impact of seasonal variations in the delivery business for forecasting the firm's financing requirements.

  Creative and innovative organizations

Write a paper on the management techniques need by those that lead creative and innovative organizations.

  What is apple business structure

What are some of the advantages and disadvantages of that designation for the business? Examples?

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