What is hastings required return

Assignment Help Financial Management
Reference no: EM13726115

Hastings Entertainment has a beta of 0.64. If the market return is expected to be 13.80 percent and the risk-free rate is 7.80 percent, what is Hastings’ required return? (Round your answer to 2 decimal places.)

Reference no: EM13726115

Questions Cloud

What is the current intrinsic value : Your research has determined the following: Company (Co.) A current dvd is 1.36, Beta = 1.7 and P/E is 23. Cash flow to equity per share is 4.72. Current risk free rate is 2.5% and the expected market return is 10%. Co. A ROE is 16% and has an EPS of..
What is the length of the days sales in inventory : Scribble, Inc. has sales of $100,000 and cost of goods sold of $75,000. The firm had a beginning inventory of $20,000 and an ending inventory of $22,000. What is the length of the days' sales in inventory?
Interests will company be paying over the five-year period : Double Circle, Inc. just signed a five-year loan agreement to purchase a piece of property. If the property cost was $160,000, what would be the size of each equal semi-annual payment to amortize the loan at an interest rate of 10%? How much interest..
What is the annual ordering cost of postcard inventory : Postcard depot large retailer post cards orders 7,664,874 postcards per year from its manufacture. Postcard depot plans on ordering postcard 12 times over the next year. Postcard depot receives the same number of postcards each time it orders. The ca..
What is hastings required return : Hastings Entertainment has a beta of 0.64. If the market return is expected to be 13.80 percent and the risk-free rate is 7.80 percent, what is Hastings’ required return? (Round your answer to 2 decimal places.)
Investment banking has changed dramatically : Investment banking has changed dramatically. Some key players either went bankrupt or were bought out. The remaining two investment banks had to apply to become bank holding companies. However, the industry experienced something of a comeback. Goldma..
What is the argument for issuing preferred shares : Common stock financing is often considered the safest form of financing, as the issuing firm is under no obligation to pay dividends. Owners of common shares assume this uncertainty in the hope of favourable returns. What is the argument for issuing ..
Generates after-tax cash flows : An Investment of $83 generates after-tax cash flows of $46 in year one, $70.00 in year 2, and 135.00 in year 3. The required rate of return is 20 percent. The net value is what?
Establish the preliminary performance targets : Establish the preliminary performance targets / level of service that will be required from the selected vendors; Establish the type of contract that you will use for each contract (i.e., fixed, cost-plus, reimbursable, unit); Determine the evaluatio..

Reviews

Write a Review

Financial Management Questions & Answers

  Financial statement analysis the specific purposes of this

financial statement analysis the specific purposes of this project are1. apply to real company the basic knowledge and

  Find the value in the financial statements

Enter the missing values in the financial statements. Assume the company started operations January 1, 2013, and all transactions involve cash.

  What is the initial investment and what is the total payoff

A trader creates a bear spread by selling a 6-month put option with a $25 strike price for $2.15 and buying a 6-month put option with a $29 strike price for $4.75. What is the initial investment? What is the total payoff (excluding the initial invest..

  Determine the cost of equity based on capm

Determine the cost of equity based on CAPM? Compute the firm's WACC? Estimate the cash flow for each year of this project

  Why are capital gains excluded from this model

A stock’s intrinsic value can be estimated by discounting expected dividends (or cash flows) to the present using the investor’s require rate of return. Why are capital gains excluded from this model? Does the exclusion of capital gains limit its val..

  Should china be forced to alter the value

Counter-point of this argument and express your opinion on this topic One to two paragraph and while in the discussion, read the point and counter-point which I have provided on this topic, then click on the forum in which you'd like to comment.

  Evaluate the proposals for expansion

Prepare the journal entry to reflect the initial $86,000 investment and evaluate the three proposals for expansion, providing the pros and cons of each option

  Coupon bond with maturity compared to similar bond

How much more would you be willing to pay for a 5% coupon bond with 10 yr maturity compared to a similar bond with 5 yr maturity if the required return is 2%? Would your answer change if required return was 8%?

  Why would an analyst use the modified du pont system to

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain

  Consider the recent performance of the closed fund a

consider the recent performance of the closed fund a closed-end fund devoted to finding undervalued thinly traded

  Task 1 understand the sources of finance available to a

task 1 understand the sources of finance available to a businesstask 1.1 the business bull explain the type of business

  Calculate each projects payback period

Calculate each project's payback period, net present value (NPV),and internal rate of return (IRR).b. Which project (or projects) is financially acceptable? Explain your answer.

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