Stock in dragula industries has a beta of 12 the market

Assignment Help Finance Basics
Reference no: EM13620584

Stock in Dragula Industries has a beta of 1.2. The market risk premium is 6 percent, and T-bills are currently yielding 4.90 percent. The company's most recent dividend was $1.30 per share, and dividends are expected to grow at a 8.0 percent annual rate indefinitely.

If the stock sells for $36 per share, what is your best estimate of the company's cost of equity?

Reference no: EM13620584

Questions Cloud

A049middotkg mass vibrates according to the equation x : a 0.49middotkg mass vibrates according to the equation x 0.45 cos 8.36t 1.05 where x is in meters and t is in
The mean score for girls was 111 with a standard deviation : an english teacher believes that there is a relationship between gender and reading ability. he takes a random sample
Knowing that the length of the cord is 3 feet and that the : a 4-lb ball revolves in a horizontal circle. knowing that the length of the cord is 3 feet and that the max allowable
This past year a gallup poll surveyed 1228 households in : this past year a gallup poll surveyed 1228 households in the u.s about gun ownership. of those surveyed 435 said they
Stock in dragula industries has a beta of 12 the market : stock in dragula industries has a beta of 1.2. the market risk premium is 6 percent and t-bills are currently yielding
A straight wire in a magnetic field experiences a force of : a straight wire in a magnetic field experiences a force of 0.034 n when the current in the wire is 2.5 a. the current
A random sample of 44 unlv students is taken the average : a random sample of 44 unlv students is taken. the average age in the sample was 20.2 years with a standard deviation of
Assume that goodhealth clinic has fixed costs of 1million : assume that goodhealth clinic has fixed costs of 1million and a total cost forecast of 1.5 million at a volume of
How much work would it take to rotate a 10 cm diameter loop : how much work would it take to rotate a 10 cm diameter loop carrying 25 a of current with a normal vector oriented 30

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of change in long term debt account

Computation of change in long term debt account balance and How much did the long term debt accounts of Hewlett Packard change

  Calculate the dollar cost of each of the proposed plans

If the firm had made a purchase of $100,000 for which it had been given terms of 2/10 net 30, would it increase the firm's profitability to give up the discount and not borrow as recommended in part b? Why or why not?

  Computation of target selling price and target cost

Computation of target selling price and target cost of manufacture and Should they make the Re-Rind and what would you say to them to reconcile the positions.

  What will flashbacks eps and pe ratio

What will Flashback's EPS and PE ratio be under the two different scenarios?

  Which project is least risky

Which project has the lowest standard deviation? Explain why standard deviation may not be an entirely appropriate measure of risk for pusrposes of this comparison.

  You have been asked by the cfo of your company to evaluate

you have been asked by the cfo of your company to evaluate the proposed acquisition of a new manufacturing machine. the

  Determine the approximate value of investment

LED Computer Electronics is planning an investment that will have cash flows of $5,000, $6,000, $7,000 and $10,000 for years one through four.

  Calculate waccs based on book,

Bolster Foods' (BF) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%.

  Describe the meaning of efficient markets

Describe the meaning of efficient markets and explain why might we expect markets to be efficient most of the time? In recent years, several securities firms have been guilty of using inside information when purchasing securities,

  Illustrate how management focus on forecasting planning

Illustrate how management focus on forecasting planning and business strategy can create wealth for a company in any industry.

  Simple mortgage loan calculation solve for interest rate

simple mortgage loan calculation solve for interest rate if you know term in years loan amount and monthly payment. i

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