What is the expected return of consolidated

Assignment Help Finance Basics
Reference no: EM131142092

The Consolidated Transfer Co. is an all-equity financed firm. The beta is .75, the market risk premium is 8% and the risk-free rate is 4%. What is the expected return of Consolidated?

A. 7%

B. 8%

C. 9%

D. 10%

E. 13%

Reference no: EM131142092

Questions Cloud

Discuss potential benefits you and the partners will receive : Discuss the potential benefits you and the partners will receive from exchanging information. Examine and outline the risks of exchanging data with other partners.
Calculate the expected growth rate of your company : Pick a company that pays dividends, then calculate the expected growth rate of your company using the CAPM. Based on the assumptions that:Risk Free Rate = 4.00% RfMarket Return = 12.00% RmWe found the Beta of MT 217 Corp = 0.80
What is the cost of equity for a firm if the firm equity bet : Assuming the CAPM or one-factor model holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 2%, the expected return on the market is 9%, and the return to the company's debt is 7%?
Draw a schematic diagram of the ideal transformer : Draw a schematic diagram of the ideal transformer connected as an autotransformer, showing the voltages, currents, and dot notation for polarity.
What is the expected return of consolidated : The Consolidated Transfer Co. is an all-equity financed firm. The beta is .75, the market risk premium is 8% and the risk-free rate is 4%. What is the expected return of Consolidated?
What is the portfolio variance if 30 pc is invested in stock : What is the portfolio variance if 30% is invested in stock S and 70% is invested in stockT?
What is the expected return on a portfolio comprised : What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?
Derive the force experienced by the conductor : Consider a current-carrying conductor of length L placed in a uniform magnetic field of strength B. Derive the force experienced by the conductor.
What is the portfolio weight of stock a : You have a portfolio consisting solely of stock A and stock B. The portfolio has an expected return of 10.2%. Stock A has an expected return of 12% while stock B is expected to return 7%. What is the portfolio weight of stock A?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the equation for roa in the dupont system and how

what is the equation for roa in the dupont system and how do the factors in that equation influence the

  A companys fixed operating costs are 480000 its variable

a companys fixed operating costs are 480000 its variable costs are 3.85 per unit and the products sales price is 4.30.

  What is the bank cost of preferred stock

Sixth Fourth Bank has an issue of preferred stock with a $6.40 stated dividend that just sold for $126 per share.

  What option strategy places floor on your currency revenue

Suppose that you have a foreign currency receivable (payable). What option strategy places a floor (ceiling) on your domestic currency revenue (cost)?

  The primary weakness of ebit-eps analysis is that

The primary weakness of EBIT-EPS analysis is that

  What is sorenson''s expected stock price in 7 years

Sorenson Corp.'s expected year-end dividend is D1 = $1.60, its required return is r = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is..

  Model of the association between weight and mileage

According to the transformed model of the association between weight and mileage, which will save you more gas: getting rid of the 50 pounds of junk that you leave in the trunk of your compact car or removing the 50-pound extra seat from an SUV?

  Use put-call parity to relate the initial investment for a

use put-call parity to relate the initial investment for a bull spread created using calls to the initial investment

  Proportionate consolidation concept

Beckman, Inc., purchases 60 percent of the outstanding stock of Calvin for $36,000. Calvin Corporation has one recorded asset, a specialized production machine with a book value of $10,000.

  Evaluate and rank only investments a and b

Evaluate and rank only investments A and B based on the a) payback period and b)net present value (use a 10% discount rate). Show your calculations.

  If he grows 100000 bushels and each futures contract calls

farmer brown grows number 1 red corn and would like to hedge the value of the coming harvest. however the futures

  If you invest 70 in stock a and 30 in stock b what would be

state of economynbspnbspnbspnbspnbspnbspnbsp prob of staetnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp return on

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