What is the required rate of return on aa stock

Assignment Help Finance Basics
Reference no: EM132072202

Question: Required Rate of Return

AA Industries's stock has a beta of 1.5. The risk-free rate is 3%, and the expected return on the market is 14%. What is the required rate of return on AA's stock? Round your answer to two decimal places. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132072202

Questions Cloud

Terms of changes in number of shares outstanding : In terms of changes in the number of shares outstanding, a 20% stock dividend is equivalent to a ____________ stock split.
Discuss about the homeland security act : The Department of Homeland Security (DHS) was created in 2002 with the passing of the Homeland Security Act by Congress.
Decided to expand its production of hybrid transit buses : New Flyer Industries has decided to expand its production of hybrid transit buses. what is the NPV of the project?
Violate the free market principle : China has a plan called 'made in china 2025', is it considered as an industrial policy? If so, is it fair as it seems to violate the free market principle?
What is the required rate of return on aa stock : AA Industries's stock has a beta of 1.5. The risk-free rate is 3%, and the expected return on the market is 14%. What is the required rate of return on AA's.
What is best estimate of the firm corporate cost of capital : A relatively small medical group practice is trying to estimate its corporate cost of capital. The practice is 100 percent equity financed.
What transactions are covered and not covered : Explain TILA-RESPA INTEGRATED DISCLOSURE (TRID), its purpose, and what transactions are covered and not covered.
Advantages and disadvantages of state-owned enterprises : Compared with private enterprises, what are the advantages and disadvantages of state-owned enterprises?
Why abuse of seniors is recognized yet usually goes : Analyze the main reasons why persons would attempt to conceal such an event which could possibly lead them into receiving criminal charges themselves.

Reviews

Write a Review

Finance Basics Questions & Answers

  Define the proportion who file a claim in the next year

For each of the following, if the scenario fits the conditions for the approximate normality of the sampling distribution for a sample proportion.

  Imc focus online advertising and advertising promotion

Discuss IMC focus Online Advertising and Advertising Promotion and include some background and give some examples.

  Rework problem 1 based on the assumption

Rework Problem 1 based on the assumption that, because of an unexpected order, PDC’s sales are forecasted to be $160,000 for September 2011.

  Discuss the pros and cons of the given strategy

With short-term interest rates near 0 percent in early 2014, and still very very low historically today, suppose the Treasury decided to replace maturing notes.

  Averages for international business machines

Locate graphs of moving averages for International Business Machines (IBM) and Cisco (CSCO). Based on the moving averages, should you be long or short in each of these stocks? After answering this question, continue to follow the stocks' prices for a..

  Redemption of stock

Company M has outstanding 400 shares of common stock of which A, B, C & D each own 100 shares or 25%. No stock is considered constructively owned by A, B, C or D under section 318.

  Calculate the duration of a commercial loan

Calculate the duration of a commercial loan. The face value of the loan is $2,000,000. It requires simple interest yearly, with an APR of 8%. The loan is due in four years. The current market rate for such loans is 8%.

  Why might bubbles be difficult to identify

Former Federal Reserve Chairman Alan Greenspan once argued that it is very difficult to identify bubbles until after they pop. What is a bubble, and why might bubbles be difficult to identify?

  A treasury bond that matures in 10 years has a yield of 6

a treasury bond that matures in 10 years has a yield of 6. a10-year corporate bond has a yield of 8. assume that the

  What is the break-even ebit

What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)

  What is the material quantity variance

During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces at $3.50 per piece). What is the material quantity variance?

  Subtracting cost of goods sold and administrative expense

Which of the following is calculated by subtracting the cost of goods sold and administrative expense from net sales?

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