Required return exceed foley required return

Assignment Help Financial Management
Reference no: EM132030310

Beale Manufacturing Company has a beta of 1, and Foley Industries has a beta of 0.35. The required return on an index fund that holds the entire stock market is 8%. The risk-free rate of interest is 5%. By how much does Beale's required return exceed Foley's required return? Round your answer to two decimal places.?

Reference no: EM132030310

Questions Cloud

Difference between insolvency and illiquidity : Explain the difference between insolvency and illiquidity.
Fosters friendly and hospitable environment : You own a boutique store in Lahaina in Maui Island, Hawaii. Your store carries top-of-the-line specialty apparel and fosters friendly and hospitable environment
Require changes to their corporate governance practices : The directors of Getswift Ltd are aware that the acquisition of Pursuit Pty Ltd will require changes to their corporate governance practices
What is the floor value of this bond : Today's closing stock price was $20. What is the floor value of this bond?
Required return exceed foley required return : The risk-free rate of interest is 5%. By how much does Beale's required return exceed Foley's required return?
The required return on riskier stock exceed : By how much does the required return on the riskier stock exceed the required return on the less risky stock?
What is the amount of the first coupon payment your firm : What is the amount of the first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is currently 7.2 percent?
What would be the net purchase price : What would be the net purchase price in April if the May Corn futures price is $5.58?
The payoff from european style look-back put option : The payoff from a European style Look-back put option is. Which of the listed items would most likely be classified as a direct materials cost?

Reviews

Write a Review

Financial Management Questions & Answers

  Current ratio greater than one can tell us that the company

A current ratio greater than one can tell us that the company __________.

  Contradictions in surface structure-deep structure of power

Membership negotiation is only relevant when a newcomer joins an organization. Scholars taking a traditional approach to power believe that there are inherent contradictions between the "surface structure" of power and the "deep structure" of power?...

  What would be the cost of the protective put portfolio

You would like to be holding a protective put position on the stock of XYZ Co. to lock in a guaranteed minimum value of 60 at year-end. XYZ currently sells for 60. How much would it cost to purchase if the desired put option were traded? What would b..

  Start investing for retirement and then made yearly payments

Tom and Tricia are 22, newly married, and ready to embark on the journey of life.   They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start..

  Nominal rate of return on this investment over the past year

Suppose you bought a bond with a coupon rate of 7.8 percent one year ago for $901. The bond sells for $934 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate ..

  Expect the prices of these bonds to be in three years

What are the prices of these bonds today? What do you expect the prices of these bonds to be in three years?

  What is the company federal income tax bill for the year

What is the company's federal income tax bill for the year?

  Power plant on island is producing too much air pollution

You can pay a pollution tax (Carbon Offsets) onetime of $13,000,000 immediately. You can close the plant and install a power cable from the mainland to the Island. That will cost you $1,000,000 at the end of this year, $3,000,000 at the end of next y..

  Why is planning for a new business harder

Why is planning for a new business harder than planning for an established operation? In which do you have to make more assumptions? Why?

  What is after-tax dividend

A stockholder, James Bradley, receives $20,000. If James' tax rate on dividends in 15 percent, what is his after-tax dividend?

  Should the project be accepted or rejected

Revenues generated by a new product are forecast as follows: Year Revenue 1 $40,000 2 30,000 3 20,000 4 10,000 5 -0- no sales after year 4 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of..

  The clients total profit or loss on these two IPOs

What is the client's total profit or loss on these two IPOs as of the end of the first day of trading?

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