Trousers business while theinvestment in t-shirts and

Reference no: EM13619464

ABCD, a Textile mill,has four main businesses. Beta and percentage of each businessis as follows:

Business Investmentin each businessRs. Beta

T-Shirts 100,000 1.50
Jackets 200,000 (0.50)
ChildrenGarments 300,000 1.25
Pants &Trousers 400,000 0.75
Requirement:(5+5+5 Marks)

• What is the beta of ABCD Corporation?

• After the analysis of the market, followinginformation was gathered: risk free rate is 6% and market riskpremium is 5%. What is the ABCD Corporation's required rateof return?

• The above mentioned company is considering thechange in its strategic focus due to changing market trends. As aresult, it want to focus more on children garments, now 50% of itstotal investment will be in Children Garments and this change willreduce its reliance on Pants & Trousers business, while theinvestment in T-Shirts and Jackets will remain the same. What willbe the shareholder's required rate of return if ABCD adoptsthese changes?

Reference no: EM13619464

Questions Cloud

What is the work input requirement for the pump what is the : consider a steam power plant that operates on a simple ideal rankine cycle and has a net power output of 45 mw. steam

During this tax year company is liable to pay tax 35 : xyz a telecom company has the following capital structurewhich is considered to be optimaldebentures 20preferred stock

Warrenton utility expects to have net income of 5 billion : warrenton utility expects to have net income of 5 billion this year. the company has an estimated capital budget of 4

Find the wavelength for 30 hz at a temperature of 273 : the range of human hearing extends from approximately 20 hz to 20000 hz.a find the wavelength for 30 hz at a

Trousers business while theinvestment in t-shirts and : abcd a textile millhas four main businesses. beta and percentage of each businessis as followsbusiness investmentin

A 063 kg ball thrown directly upward with an initial speed : a 0.63 kg ball thrown directly upward with an initial speed of 13.7 ms reaches a maximum height of 8.1 m. what is the

Fission of one nucleus of uranium235 yields an average of : burning one metric ton 1 000 kg of coal can yield an energy of 3.30x1010j. fission of one nucleus of uranium235 yields

Jaster jets has 10 billion intotal assets its balance sheet : jaster jets has 10 billion intotal assets. its balance sheet shows 1 billion in currentliabilities 3 billion in

Each second 1450 m3 of water passes over a waterfall 130 m : each second 1450 m3 of water passes over a waterfall 130 m high. three-fourths of the kinetic energy gained by the

User Account

All Pages