What is percentage return on assets of business

Assignment Help Finance Basics
Reference no: EM132618561

Suppose CAPM holds, and the beta of equity of your company is 2.55. Expected market is risk premium is 5.00% and risk free rate is 2.75%. Suppose the debt to equity ratio of your company is 25% and market believes that your probability of default on your debt is 0. What is percentage return on assets of your business?

Reference no: EM132618561

Questions Cloud

What is the return on assets in the business : What is the return on assets in the business if Macrosoft has no debt?
Explaining what is an roi ratio : Explaining What is an ROI ratio? What are its advantages and disadvantages? also need help Using Word Document to make list of Balance Scorecard
How much of her loss is suspended : Donna invests $200,000 for a 10% interest in a limited partnership. She receives a K-1 with her loss at $80,000. How much of her loss is suspended?
Compare the roles of the practice and research scholar : Compare and contrast the roles of the practice (DNP) and research (PhD) scholar. How could these roles add value in addressing a practice problem at your.
What is percentage return on assets of business : Suppose CAPM holds, and the beta of equity of your company is 2.55. Expected market is risk premium is 5.00% and risk free rate
What will the new purchase price for existing stockholders : Katie Homes and Garden Co. has 13,300,000 shares outstanding. What will be the new purchase price for the existing stockholders
Determine the present values of the cash flow streams : Determine the present values of the following cash flow streams. The appropriate interest rate is 12%. (Hint: It is fairly easy to work this problem dealing)
Discuss the effects of doubling the term of the loan : Find the interest rate on a simple interest loan charging $2,160 interest on a principal loan of $6000 over 6 years and Discuss the effects of doubling the term
Explain the benefits of genetic testing : Explain the benefits and consequences of genetic testing? What is your personal stance on genetic testing? The response must be typed.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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