What is the expected return of the stock

Assignment Help Finance Basics
Reference no: EM132679113

Given a risk-free rate of 4.4%, a market return of 12.6%, and a beta of 1.3, what is the expected return of the stock? As a percentage.

Reference no: EM132679113

Questions Cloud

Think about some of the capital budgeting techniques : Think about some of the capital budgeting techniques you might use for some upcoming projects.
What aspects of community policing need to be changed : What aspects of community policing need to be changed in order to be more applicable in today's world? What is the current and future state of the community.
Distinguish between perfect and imperfect security markets : Distinguish between perfect and imperfect security markets. Explain why the existence of imperfect markets creates a need for financial intermediaries
Determine the percentage allocation for appraised value : In January 2017, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. How do determine the percentage allocation for appraised value?
What is the expected return of the stock : Given a risk-free rate of 4.4%, a market return of 12.6%, and a beta of 1.3, what is the expected return of the stock? As a percentage.
What is the sensitivity of ocf to changes : In percentage terms, what is the sensitivity of OCF to changes in the variable cost per unit projection?
Problem - Surplus and Deficit Units : Explain the meaning of surplus units and deficit units. Provide an example of each. Which types of financial institutions do you deal with
What is the npv if the company : What is the NPV if the company decides to wait 2 years to purchases the machine? (Round answer to 2 decimal places. Do not round intermediate calculations)
What is the price of the bonds for renfro rentals : Renfro Rentals, The bonds mature in 18 years, have a face value of $1,000, and a yield to maturity of 8%. What is the price of the bonds?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the new divisor for the price-weighted index

If Baker undergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index?

  Information regarding forward contract

Suppose that your company will be receiving 30 million euros six months from now and the euro is currently selling for 1 euro per dollar. If you want to hedge the foreign exchange risk in this payment

  What return on a one-year treasury bill can be expected

Real interest rates: approximation method) You have been asked to provide an approximation of the real interest rate considering following situation.

  What is the amount of the firm net fixed assets

What is the amount of the firm's net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  In how many years should the new bond mature

Both bonds are bought to yield % nominal interest convertible semiannually. In how many years should the new bond mature?

  Financial analysis project project summary

This project is intended to employ the finance and MS Excel concepts covered in the course. As a group project, various objectives of the finance curriculum are addressed. Assessment outcomes addressed are:

  Determine the percentage holding period return

Suppose a U.S. Treasury bill, maturing in 30 days, can be purchased today for$99,500. Assuming that the security is held until maturity, the investor will receive$100,000 (face amount). Determine the percentage holding period return on this invest..

  What is the npv break-even level of diamonds

What is the NPV break-even level of diamonds sold per year assuming a tax rate of 40%, a 10-year project life, and a discount rate of 14%?

  Firm dividend will increase its value

Rightists argue that increasing a firm's dividend will increase its value. Review some of the key points in their assertion.

  Calculate the degree of combined leverage

The Denny Corporation is considering to expand production because of the increased volume of sales. The current income statement is as follows:

  Explain why the valuation models for a perpetual bond

Explain why the valuation models for a perpetual bond, preferred stock, and common stock with constant dividend payments (zero growth) are virtually identical.

  What is sarah holding period return

She sold all stocks today for $66.80. During the year the stock paid dividends of $2.59 per share. What is Sarah's holding period return

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