Stock beta and required rate of return

Assignment Help Financial Management
Reference no: EM131545171

Beta and required rate of return

A stock has a required return of 11%; the risk-free rate is 4.5%; and the market risk premium is 4%.

A) What is the stock's beta? Round your answer to two decimal places.

B) New stock's required rate of return will be ___%? Round your answer to two decimal places.

-Got part A, need part B.

Reference no: EM131545171

Questions Cloud

What is the expected return on bond : What is the expected return on a bond if the return is 9% two-thirds of the time and 3% one-third of the time? What is standard deviation of returns on bond?
Reduce the bank interest-rate risk : What actions could you take to reduce the bank’s interest-rate risk?
Annual heating load by solar energy : A solar plus auxiliary system is proposed for a residence to carry 60% of annual heating load by solar energy.
Total investor-supplied capital-returns on investors capital : Companies HD and LD have identical tax rates, total assets, total investor-supplied capital, and returns on investors' capital (ROIC),
Stock beta and required rate of return : A stock has a required return of 11%; the risk-free rate is 4.5%; and the market risk premium is 4%. What is the stock's beta?
Chemical producer decides to issue security : A chemical producer decides to issue a security that makes the following payments. If the discount rate is 7% what is the present value?
Identify obviously dominated treatments : Identify obviously dominated treatments, Eliminate these obviously dominated treatments from the table for further analysis.
What is bond nominal yield to call : What is the bond's nominal yield to maturity? What is the bond's nominal yield to call?
Risk premium between the company stock and bond returns : Badger Corp. has an issue of 6% bonds outstanding with 6 months left to maturity. The estimated risk premium between the company's stock and bond returns is 3%.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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