What is the company new required rate of return

Assignment Help Accounting Basics
Reference no: EM133147498

Question - Devaney Corporation's stock had a required return of 9.15% last year when the risk-free rate was 2.00% and the market risk premium was 5.50%. Then an increase in investor risk aversion caused the market risk premium to rise by 1% from 5.5% to 6.5%. The risk- free rate and the firm's beta remain unchanged. What is the company's new required rate of return?

Reference no: EM133147498

Questions Cloud

Describe neotraditional design or new urbanism : How would you describe neotraditional design or "new urbanism" and how does this go with the future and vision of urban design?
How can a two-week schedule for training : What are the list of objectives to be accomplished from the employee training.
Association group for small to medium size businesses : GreatBiz is a professional association group for small to medium size businesses. You have been appointed by GreatBIz to gather and present research information
What would you expect the nominal rate of interest to be : Suppose the real interest rate is 6 percent and the expected inflation is 2 percent. What would you expect the nominal rate of interest to be
What is the company new required rate of return : Devaney Corporation's stock had a required return of 9.15% last year when the risk-free rate was 2.00%. What is the company new required rate of return
Gender field containing values : b. Gender field containing values either 'M' or 'F' or missing(50000 records have missing gender)
What are the 4p of marketing : What are the 4P's of marketing? Support your answer with examples
Associated with volunteers for campfire social event variety : List 7 major areas associated with volunteers for Campfire social event variety the children charity of ontario.
What is the per-share estimate of the stock intrinsic value : Analysts expect the company's dividend to grow by 12% this year, by 8% in Year 2, What is the per-share estimate of the stock intrinsic value

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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