What is the company cost of equity capital

Assignment Help Finance Basics
Reference no: EM132473896

The Rhaegel Corporation's common stock has a beta of 1.4. If the risk-free rate is 5.4 percent and the expected return on the market is 12 percent, what is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132473896

Questions Cloud

Determine cost of land and land improvements : Determine cost of land and land improvements. What is the cost of the equipment? Identify operating and capital expenditures.
ACE Project - Optimisation of Aircraft Structures : EN3300 ACE Project- Optimisation of Aircraft Structures. Find the Optimisation of the Aircraft Structures. Design aerospace structures reduces cost of materials
What should be the 12-month interest rate : If inflation in the next 12 months is expected to be 4% and investors in general require a real rate of return of 2%. What should be the 12-month interest rate?
What is the new market value of the company : Leah, Inc., is proposing a rights offering. Presently there are 500,000 shares outstanding at $46 each. There will be 125,000 new shares offered at $38 each.
What is the company cost of equity capital : If the risk-free rate is 5.4 percent and the expected return on the market is 12 percent, what is the company's cost of equity capital?
Explain how external factors affect organisations : explain how external factors affect organisations and how changes in the external environment affect organisational strategy
What is a business transaction : What is a business transaction? When business transactions occur, at least three of the individual balance sheet items must change
Why would investors want a board to be declassified : Why would investors want a board to be declassified? What are the advantages and disadvantages?
Draw the payoff pattern for prices : Problem: We consider the following options strategy on ALPHABET and its total payoff at the expiry date of the short-term option.

Reviews

Write a Review

Finance Basics Questions & Answers

  Managing multiple investments by an investments manager

Identify' two (2) significant risks of being too culturally* responsive to such characteristics and explain how you would mitigate such risks.

  At expiration 3 months later the asset price is 5675 all

an investor purchases a call option with an exercise price of 55 for 2.60. the same investor sells a call on the same

  What will the terms of the swap be

A company expects to receive ¥ 5,650,000 from a customer each quarter for the next year. It would like to hedge the exchange rate risk of this payment.

  What is a progressive tax system what is the difference

what is a progressive tax system? what is the difference between a firms marginal and average tax

  What are some tax advantages of owning your own business

What tax situation would cause a person who previously used Form 1040A to be required to file Form 1040?

  Compute nike''s conservatism ratio over the last three years

Briefly describe the five largest accrued liabilities, and the basic form of the entry lending to their recognition on the balance sheet.

  First three months of the loan

What is the fixed monthly payment you will have to make? Write out the amortization table for this loan for the first three months of the loan.

  How a professional in finance major can use excel

Describe (100 words), using an example, how a professional in finance major can use Excel to organize and analyze data to produce useful information.

  What is the bond price

What is the bond's price? Show the variables used to calculate the bond's price.

  How was the federal reserve system established

1. How was the Federal Reserve System established? What is its organizational structure?

  Compute the future value of the various annuities

Compute the future value of the various annuities and Calculate the future value of the following

  What is the effective annual rate on this arrangement

A firm sells its $1,170,000 receivables to a factor for $1,134,900. The average collection period is 1 month. What is the effective annual rate on this arrangement?

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