Stock value by using capital asset pricing model

Assignment Help Accounting Basics
Reference no: EM13154112

An investor is looking to buy stock in Company XYZ. The earnings in the last year were $9.50 a share and expected to grow 3% a year for the upcoming 5 years. The current return on benchmark investments is 11%. Using the Capital Asset Pricing Model what is the stock value for XYZ Company?

Reference no: EM13154112

Questions Cloud

Establish an interval estimate around the sample mean : Find the standard error of the mean. Also establish an interval estimate around the sample mean using one standard deviation of the mean.
What is the opportunity cost of tammies trip : The cost of the concert ticket is $50. What is the opportunity cost of Tammie's trip to the concert and the monthly productivity of two workers is as follow: Alex 300 Pants & 100 bikes and Joel 100 pants & 50 bikes.
Calculate the mass of ice : Consider a glass of 262 mL of water at 28°C. Calculate the mass of ice at -15°C that must be added to cool the water to 10°C after thermal equilibrium is achieved.
Explain what is wrong when statistician survey voters : Next morning, he came to work at 8:00 and began to make calls. By 11:00 a.m., his survey was done. Don't discuss what is not said. Discuss what is wrong with what is said.
Stock value by using capital asset pricing model : An investor is looking to buy stock in Company XYZ. The earnings in the last year were $9.50 a share and expected to grow 3% a year for the upcoming 5 years. The current return on benchmark investments is 11%. Using the Capital Asset Pricing Model..
Determine the divisional and company net income : Determine the divisional and company net income if the transfer price is set at the market price. Determine the divisional and company net income if the transfer price is set at total cost. Determine the divisional and company net income if the trans..
Mass of limestone is required to remove the sulfur dioxide : what mass of limestone is required to remove all the sulfur dioxide formed by the combustion of 7.5 104 kg of coal that is 0.33 mass % sulfur?
Does this hurt the growth in the economy? : Assuming a company does not have enough excess retained earnings to fund future projects that have positive NPV's, they would have to sell debt or issue new capital. Issuing new capital is often thought of as a negative sign to current stock holders,..
General types of subsequent events : What are the general types of subsequent events that require Green's consideration and evaluation? What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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