User Account

All Pages

What is the required rate of return for olter

Assignment Help Finance Basics
Reference no: EM13986449

Olter, Inc. is starting its risk management program for the company and has asked for your help in determining critical risk measurements for the firm. The company has identified several factors in the market that they believe are critical for your tasks:

• The risk-free rate is 6%

• The required return on the average stock is 13%

• Olter's average return is 13%

1. What is Olter's beta coefficient?

2. How does the beta coefficient influence the firm's stock value?

3. What is the required rate of return for Olter?

4. In terms of risk, how does Olter compare to the average firm in the market?

5. If Olter's beta increased to 1.6, what would you expect to happen to the required rate of return and what does this mean for the firm?

Reference no: EM13986449

Questions Cloud

Calculate the distance between the points : If the crystal is 1cm thick, calculate the distance between the points where the two polarized rays emerge from the crystal.
What are the wavelengths for each ray inside the crystal : What are the average speeds for the ordinary and extraordinary ray in calcite? What are the wavelengths for each ray inside the crystal?
The amount due on the maturity date of a 10000 30 day : The amount due on the maturity date of a $10,000, 30-day 9%, note receivable is?
Characteristics of the us population : Use the Internet to describe the following characteristics of the U.S. population in 2025 (www.ccnsus.gov is a good place to start). How will this differ from the way it is today? What are the marketing strategy implications of these shifts
What is the required rate of return for olter : Olter, Inc. is starting its risk management program for the company and has asked for your help in determining critical risk measurements for the firm. The company has identified several factors in the market that they believe are critical for you..
Explore the tax consequences of selling inherited property : Explore the tax consequences of selling inherited property and determine how the tax basis is calculated for profit or loss. In terms of transferring assets to family members, state how this action may impact your tax liability.
How far could she be from the bird : How far could she be from the bird and still be able to hear it? Assume no reflections or absorption of the sparrow's sound.
Determine under what circumstances it would be advantageous : Specifically, consider how either starting a business or going into the real estate business might fit into this strategy and explain the tax benefits of each strategy.
Where is the table center of mass : You have a 10-kg table with each leg of mass 1.0 kg Acˆ'total mass 14 kg. If you place a 5.0-kg pot of soup in the back right corner of the table (Figure 1) , where is the table's center of mass? Assume that the size of the soup bowl and thickness..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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