What is return on assets of business

Assignment Help Finance Basics
Reference no: EM132499372

Suppose CAPM holds, and the beta of the equity of your company is 2.33. The expected market risk premium (the difference between the expected market return and the risk-free rate) is 6.00% and the risk-free rate is 3.25%. Suppose the debt-to-equity ratio of your company is 35% and the market believes that the beta of your debt is 0.30. What is return on assets of your business? (Allow two decimals in the percentage but do not enter the % sign.)

Reference no: EM132499372

Questions Cloud

What impact plagiarism has on a students academic career : What impact plagiarism has on a student's academic career? How the view on plagiarism is the same or different in this course than others you have taken?
What is portfolio return in year 1 and year 2 : If your portfolio comprises 100 shares of Apple and 75 shares of Amazon, what is your portfolio return in year 1 and year 2? Assume no dividends are paid.
MIS171 Business Analytics Assignment : MIS171 Business Analytics Assignment help and solution, Deakin Business School - assessment writing service - Apply quantitative reasoning skills to analyse
Design program or workshop utilizing storied selves concept : For this paper, you will make use of Boske's article, "Preparing School Leaders to Interrupt Racism" to design a program or workshop utilizing.
What is return on assets of business : What is return on assets of your business? (Allow two decimals in the percentage but do not enter the % sign.)
Cost of common equity financing using gordon model : The investments banker will charge flotation costs $4.73 per share. Calculate the cost of common equity financing using Gordon Model.
What is the value of the interest rate tax shield : Suppose a project requires three annual interest payment of $20 million. If the tax rate is 35% and the cost of debt is 7%, what is the value of the interest
What is the return on levered equity : A firm requires an investment of $50,000 and will return $60,000 after 1 year. If the firm borrows $20,000 at 7%, what is the return on levered equity?
Weighted average cost of capital-black bird company : If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

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