What is the approximate market value of equity

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QUESTION 1 - The expected return of stock EA is 25.75% if the expected return of the market portfolio is 229%. When the expected return of the market portfolio is 109%, the expected return of the stock EA is 10.756. What is the beta of stock EA?

QUESTION 2 - The expected return of stock EA is 25.75% if the expected return of the market portfolio is 2296. When the expected return of the market portfolio is 10%, the expected return of the stock EA is 10.756. Assume the expected return of the market portfolio is equally likely to be 229% or 109%. What is the expected return of stock EA?

QUESTION 3 - The expected return of stock EA is 25.75% if the expected return of the market portfolio is 229%. When the expected return of the market portfolio is 10%, the expected return of the stock EA is 10.756. If the risk-free rate is 3%%, and the market return is equally likely to be 229% or 10%, what is the alpha of stock EA?

QUESTION 4 - Majestic Silver Inc. reported a free cash flow to the firm of $670 million last year. The interest expense to the firm was $50 million and the net debt increased by $71 million. The tax rate of the firm was 32%. What is the approximate market value of equity (round your answer to '00 millions) if the FCFE grows at 2.5% forever and the cost of equity is 12%?

Reference no: EM132963157

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