What is bestways cost of equity capital

Assignment Help Finance Basics
Reference no: EM13276148

According to Value Line, Bestway has a beta of 1.15. If 3-month Treasury bills currently yield 7.9 percent and the market risk premium is estimated to be 8.3 percent, what is Bestway's cost of equity capital?

Reference no: EM13276148

Questions Cloud

Create an ios chart : Create an IOS chart with the following investment alternatives: Alternative A has an IRR of 8% and will add $10 million to the capital structure, while alternative B adds $12 million but returns 6.5%.
Determine the linear regression line : Determine the linear regression line relating Y to X and compute the F statistic and its associated P-value and the 95% confidence intervals for the slope and intercept.
Explain what is the maximum work of compressed air : What is the maximum work that can be obtained from a 340 L tank of compressed air at 4350 PSI
What other tactical decisions might need to be made : As a result of this decision, what other tactical decisions might need to be made in terms of future staffing, raises, other capital projects?
What is bestways cost of equity capital : According to Value Line, Bestway has a beta of 1.15. If 3-month Treasury bills currently yield 7.9 percent and the market risk premium is estimated to be 8.3 percent, what is Bestway's cost of equity capital?
Determine vapor pressure of pure benzene at 303 k : A solution of 75.0 g of benzene (C6H6) and 75.0 g of toluene (C7H8) has a total vapor pressure of 80.9 mmHg at 303 K. Another solution of 100.0 g benzene and 50.0 g toluene has a total vapor pressure of 93.9 mmHg at this temperature.
Determine costs of internal and external equity for firm : New common stock can be sold to net the company $11 per share. Determine the costs of internal and external equity for this firm.
Calculate standard free energy change at 1300k for reaction : one side of an oxygen meter is exposed to oxygen in equilibrium with a mixture of Ni and NiO at 1300K, and the other side is exposed to air at 101kPa. If the cell e.m.f is 0.596V, Calculate the standard free energy change at 1300K for the reaction..
Find the speed with which the proton hits the negative plate : Consider a parallel plate capacitor with plates of size 2 cm times 2 cm, with a distance of 2 mm between the plates. find the speed with which the proton hits the negative plate

Reviews

Write a Review

Finance Basics Questions & Answers

  What will the price be in three years and in fifteen years

Patience, Inc., just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 6.00 percent per year, indefinitely. Assume investors require an 11 percent return on this stock.

  What was the annual rate of return on your investment

You purchased a piece of property for $30,000 nine years ago and sold it today for $83,190. What was the annual rate of return on your investment?

  Calculation of expected return on investment

Calculation of expected return on investment and what is your expected starting salary as well as the standard deviation of that starting salary

  Calculate the weighted-average cost of capital

A company current balance sheet is as follows: calculate the firm's weighted-average cost of capital at various combinations of debt and equity, given the following data?

  Key financial information

Determine what type of key financial data are available at the page you entered? Write one paragraphs describing what information can be obtained under each "hot link".

  Choose the investment with the highest return over 20 years

If the premiums on $100,000 of 20 year term life insurance is $25 per month for a forty year old non-smoker. The risk free interest rate is 3% per year. Would you recommend that I buy the insurance or a 20 year municipal bond issued by NYC pays 6%..

  Significant inherent risk

Suppose your Customer, General Television, produces televisions and during the current year acquired Micro Engineering, Inc., which manufactured flat panel plasma screens for computers so that it could compete in the market for flat panel televisions..

  Find correct statement regarding 401(k) plan

Determine the correct statement regarding 401(k) plan.

  Capital investment decisions

John Adams is a cash receipts clerk for Boro Corporation He earns payments from customers and records the payments to the customers' accounts

  Theories of interest rate determination

Define and compare the following theories: expectations theory, liquidity theory, market segmentation theory, and preferred habitat hypothesis theory.

  Liabilities and equity categories

ATM Banc has the following liabilities and equity categories

  Which organizational officer is directly responsible

Which organizational officer is directly responsible for managing a company's cash and funds invested in various marketable securities?

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