The required return on robotics stock

Assignment Help Financial Management

Reference no: EM131994029

1. In February of 2017, Big Rock Asst Management, Inc. purchased $200,000,000 of newly issued 10-year, 4.5% coupon rate, $1,000 par value non-callable bonds directly from Orwell Technologies, Inc. No investment bankers or other financial institutions were involved in the transaction. This transaction was a ?

a. primary market transaction in the money market

b. secondary market transaction and private placement

c. primary market transaction and a private placement

d. secondary market transaction in the bond markt.

2. Joe purchased 500 shares of Robotics Stock at $4 per share. Bill sold the shares a year later for $5.45. Robotics stock has a beta of 1.4, the risk-free rate of return is 5% and the market risk premium is 9%. The required return on Robotics Stock is:

19.6% 18.65% 17.6% or 36.25%

Reference no: EM131994029

Questions Cloud

What is the break-even point in bags : What is the break-even point in bags? Calculate the profit or loss (EBIT) on 16,000 bags and on 34,000 bags.

Non-operating activities on the income statement : Non-operating activities on the income statement are. Normally, the first note to the financial statements is.

What is degree of combined leverage : If you combine Sinclair’s capital structure with Boswell’s operating plan, what is the degree of combined leverage?

What is your experience with pricing on airlines : What is your experience with pricing on airlines? Have you benefited by purchasing tickets at a lower price by ordering at "the right time"?

The required return on robotics stock : Robotics stock has a beta of 1.4, the risk-free rate of return is 5% and the market risk premium is 9%. The required return on Robotics Stock is.

Investment to cover the cost of child university education : What annual rate of interest must you earn on your investment to cover the cost of your child's university education?

Standard deviation of return on minimum variance portfolio : An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on the minimum variance portfolio is _________.

What is growth rate expected for emery company dividends : What is the growth rate expected for Emery Company dividends?

Steers is evaluating two competing investment projects : Steers is evaluating two competing investment projects. Will your choice be the same, whatever the cost of capital?

User Account

All Pages