The expected return on the market

Assignment Help Financial Management
Reference no: EM131333485

A stock has a beta of 1.02, the expected return on the market is 12 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %

Reference no: EM131333485

Questions Cloud

What is the required return on equity : Thames Inc.'s most recent dividend was @2.20 per share (i.e., D0=$2.20). The dividend and stock price ae expected to grow at a rate of 5% per year. The stock price is currently $44? What is the required return on equity (r) if flotation costs are 10%..
Investments can be long-term or short-term : Investments can be long-term or short-term. If you are investing for the long term, how much do you think general news stories, news about the economy, and company-specific news stories should affect your investment choices? Explain your answer in de..
What is the value of safeco stock when required return : Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 8 percent. Safeco’s recent dividend was $1.20. What is the value of Safeco stock when the required return is 10 percent?
Calculate the degree of operating leverage again : Faber Corporation, a basketball hoop manufacturing firm in Hickory, Indiana, plans to branch out and begin producing basketballs in addition to basketball hoops. It has a choice of two different production methods for the basketballs. Calculate the d..
The expected return on the market : A stock has a beta of 1.02, the expected return on the market is 12 percent, and the risk-free rate is 3 percent. What must the expected return on this stock be?
Estimated monthly variable costs using high-low method : Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows: How much are estimated monthly variable costs using the high-low meth..
How many units must be sold to break-even : Tim Taylor has written a self improvement book that has the following cost characteristics: How many units must be sold to break-even?
What is conversion premium per share : A 20 year corporate bond has a coupon rate of 9% paid semi annually, a par value of $1000 and a quoted price of 102. If the bond is convertibleinto 25 shares of common stock with a current market price per share of $30, what is the conversion premium..
Using the high-low method-what is the variable cost per unit : Using the high-low method, what is the variable cost per unit? Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $178,300, how many dollars of revenue must the company generate in order to reach the break-even point?

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