User Account

All Pages

What is the market beta of fast corporation

Assignment Help Finance Basics
Reference no: EM132666811

1. What is the market beta of Fast Corporation considering that the expected rate of return is 14%, its risk-free rate is 7% and the market risk premium is 4%.

2. Corporación Xoom's common stock has a beta coefficient of 1.3. The market risk premium is 7% and the risk-free rate is 3%.

a. What is the required rate of return on these stocks, according to the CAPM?

b. Using the information provided in the previous point, what is the required rate of return on the ordinary shares of Corporación Express? These stocks have a beta coefficient of 0.5.

Reference no: EM132666811

Questions Cloud

What is the firm horizon or continuing-value : Holt Enterprises recently paid a dividend, D0, of $2.25. It expects to have nonconstant growth of 12% for 2 years followed by a constant rate of 7% thereafter.
Why do many carmex product prices end in nine : Why do many Carmex product prices end in 9? What type of pricing is this called? What should happen to demand when this approach is used?
Describe the effects on the risk in portfolio : If you are an investor who invests in only U.S. stocks and bonds, describe the effects on the risk in your portfolio.
How culture shapes verbal and nonverbal communication : You will explore the relationship between culture and communication. How culture shapes verbal and nonverbal communication, utilizing Bevan.
What is the market beta of fast corporation : 1. What is the market beta of Fast Corporation considering that the expected rate of return is 14%, its risk-free rate is 7% and the market risk premium is 4%.
Write and choose between wework and gopro : Write and Choose between Wework and Gopro. Write the case study will cover the topics(The Innovation definitions, The Innovation Challenge
Formula to calculate european put option : What is the Put-call parity relationship formula to calculate European put option?
How can firms successfully change a regional brand : How can firms successfully change a regional brand into a national brand that will differentiate it and have a competitive advantage?
Write and choose between wework and gopro : Write and Choose between Wework and Gopro. Write the case study will cover the topics(The Innovation definitions, The Innovation Challenge

Reviews

Write a Review

Finance Basics Questions & Answers

  Is the reasoning linking application and theory sound?

Is the reasoning linking application and theory sound?

  Percent and semiannual coupon payments

Marshall Ltd is issuing eight-year bonds with a coupon rate of 5.35 percent and semiannual coupon payments.

  What is the maximum investment

With a required rate of return of 18%, what is the maximum investment you would be willing to make in this project

  Moving cash flows

What is the value in year 18 of a $2,600 cash flow made in year 8 when the interest rates are 5.8 percent?

  What percentage return do you earn on the investment

You buy 100 shares in a no load mutual fund at its net asset value of $10 . During the year the mutual fund distributes $0.75 in dividend. You redeem the shares for their net asset value of $12.03 but the fund charges a 5.5 % exist fee. What perce..

  What effect will changes have on firm cash conversion cycle

A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase inventory.

  What is the cost of equity from retained earnings

Lanser Inc. hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data

  Define the term divergence in tourism-hospitality-leisure

The organization and structure of each of tourism, hospitality and leisure is demonstrably different in different parts of the world according

  Find out var and es for the portfolio

Consider a position consisting of a $120,000 investment in asset A and a $120,000 investment in asset B. Assume that the daily volatilities

  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 was the bond’s conversion premium on that date

what was the bond's conversion premium on that date? (Assume no change in the exchange rate from that given in the vignette.)

  Create a brief methodology section for research paper

Create a brief methodology section for research paper. - You can choose between Qualitative or Quantitative methods.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd