What is the beta on bradshaw stock

Assignment Help Operation Management

Reference no: EM131719829

Bradshaw steel has a capital structure with 30% debt and 70% common equity. The YTM on the company’s long-term bonds is 8%, and the firm estimates that its overall composite WACC is 10%. The firm uses the CAPM to determine its cost of equity. The risk-free rate is 5.5%, the market risk premium is 5%, and the company’s tax rate is 40%. What is the beta on Bradshaw’s stock? (HINT: use the WACC to find ks, then use the CAPM to solve for the beta)

Reference no: EM131719829

Questions Cloud

Define how does poverty affect marginalized women : How does poverty affect marginalized women and children what is written below

Lucent technologies employee received several written : Following a merger in 1998, a Lucent Technologies employee received several written communications from the company stating that the date of first service

Why did the plaintiff estoppel claim also fail : Why did the plaintiff's estoppel claim also fail? Why was it not reasonable for him to rely on multiple estimates of a higher pension?

What is meaningful technology integration in the teaching : What is meaningful technology integration in the teaching and learning process

What is the beta on bradshaw stock : The risk-free rate is 5.5%, the market risk premium is 5%, and the company’s tax rate is 40%. What is the beta on Bradshaw’s stock?

Who is responsible for controlling the runoff from the river : Are laws created to protect the environment - designed and geared toward the safety and protection of the public - or for political purposes?

Compute the contribution margin per unit : The Grandma Corporation manufactures two products - cookies and candy. Compute the contribution margin per "unit."

Define claim that black holes do not gobble up : World-renowned physicist Stephen Hawking claims that black holes do not gobble up everything that falls into them without leaving a trace.

What does the text mean in the setting of old testament days : What does the text mean in the setting of Old Testament days, i.e., the time it was written and the people to whom it was written

User Account

All Pages