User Account

All Pages

What is the required rate of return

Assignment Help Finance Basics
Reference no: EM132509439

A stock has a beta of 1.3. The pure rate of interest is 2.00 percent and investors require a 3 percent inflation premium. What is the required rate of return on this stock if the market risk premium is 6 percent? (Hint: First, calculate the risk-free rate using the pure rate and the inflation premium. Next, use this risk-free rate to find the required return on the stock.)

Reference no: EM132509439

Questions Cloud

What must the contributions be : Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. During these years of part-time work
Net operating income will increase by what amount : If sales increase by 10%, net operating income will increase by what amount? Bloomington Corporation reported on their contribution format.
Field of big data and cloud computing : The concept of 3-F Method is introduced. Discuss the purpose of this concept and how it is calculated.
Find the cost of conversion in the ending inventory is : Find The cost of conversion in the ending inventory is. Information from Chipset's cost of production report:Cost per equivalent unit in process
What is the required rate of return : A stock has a beta of 1.3. The pure rate of interest is 2.00 percent and investors require a 3 percent inflation premium. What is the required rate of return
Enterprise risk management : Find 2 articles on Enterprise Risk Management that are not earlier than 2017.
Discuss the pros and cons of economic growth : First Paragraph, discuss the pros and cons of economic growth. Who receives the benefits from economic growth and who loses from economic growth?
Analyze the effects of each policy : Analyze the effects of each policy. Use the demand and supply model to illustrate your analysis. The graphs must be your own creation. Don't copy and paste.
Percent change in the market price of the bond : Calculate the bond's yield to maturity (YTM). Now, if due to changes in market conditions, the market required YTM suddenly increases by 2%

Reviews

Write a Review

Finance Basics Questions & Answers

  For each of the three items 1 depreciation 2 inventory and

for each of the three items 1 depreciation 2 inventory and 3 installment sales explaina. two acceptable accounting

  Discuss the account balances for cowboy law firm

Below are the account balances for Cowboy Law Firm at the end of December.

  Name for the method of communications

What's the name for the method of communications used by stock traders frantically running around a trading floor and using hand signals?

  How much will you need today as a single amount

How large a fund will you need when you retire in 20 years to provide the 30-year, $20,000 retirement annuity? How much will you need today as a single amount to provide the fund calculated in part a if you earn only 9% per year during the 20 years p..

  International strategies the coca cola company

Describe the international strategies The Coca Cola Company uses in their foreign markets.

  What is the present value of a 100 lump sum to be received

1 what is the present value of a 100 lump sum to be received in 5 years if the opportunity cost rate is 10 percent?2

  Write the claim as a mathematical statement

For the statement below, write the claim as a mathematical statement. State the null and alternative hypotheses and identify which represents the claim.

  What is the minimal amount you should bid per park

Your required rate of return is 15 percent and your tax rate is 40 percent. What is the minimal amount you should bid per park?

  Income statement in good form-clarksville printing company

Verify whether Clarksville Printing Company made a profit in 2019, by presenting an income statement in good form.

  Bonds make semi annual payments

The bonds make semi annual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?

  What are the economic factors that influence the return on

what are the answers to these questionsgo to httpbiz.yahoo.comptopsall.html and pick a mutual fund to answer the

  What should the coupon rate be on the new bonds

The company currently has 9.5% coupon rate bonds that sell for $988, make semi-annual payments, and mature in 20 years.

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