What is the required rate of return on AAs stock

Assignment Help Financial Accounting
Reference no: EM132819869

Question - AA Corporation's stock has a beta of 0.9. The risk-free rate is 2%, and the expected return on the market is 13%. What is the required rate of return on AA's stock? Do not round intermediate calculations. Round your answer to one decimal place.

Reference no: EM132819869

Questions Cloud

Recalculate parts a and for an apr of 8 percent : Calculate the future sum of ?$1,000?, given that it will be held in the bank for 10 years at an APR of 4 percent.
Differences between financial and managerial accounting : Question - Discuss the differences between financial and managerial accounting. What types of financial statements are used by business organizations
How much invested now at eight percentbe just sufficient : How much invested now at 8% would be just sufficient to provide three payments, with the first payment in the amount of $11,500
Calculate the amount of money : Stanford? Simmons, who recently sold his? Porsche, placed ?$10,600 in a savings account paying annual compound interest of 5 percent.
What is the required rate of return on AAs stock : The risk-free rate is 2%, and the expected return on the market is 13%. What is the required rate of return on AA's stock
Expected sales of the new finance book next? year : a. If the 19,000 copies of book sales this year were expected to increase by 17 percent per? year, what are the expected sales of the new finance book next? yea
Explain how social science is empirical : If you can explain how social science is empirical and what being empirical means, identify the four types of research and discuss which are more appropriate.
Calculate the present value of the increased income : A workshop designed to retrain workers 55 years of age and older who have lost their jobs is proposed. Suppose the workshop will increase the income of each par
Health care systems can be considered complex : Elaborate on the major reasons why, according to the textbook, health care systems can be considered complex.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What the software company will raise a total amount of

What The Software Company will raise a total amount of? The Software Company is going public using an auction IPO. The Firm has received

  Prepare the entry that glass company would make to record

Prepare the entry that Glass Company would make to record the purchase. -  Prepare the balance sheet for Glass Company immediately following the purchase.

  Identify and explain accounting principles

Mr Chan, one of the owners of Flyfli took $500 from the company's cash account and instructed the accountant to record it as an expense.

  Determine jasons basis in the land in the inventory

Determine Jason's basis in the land, in the inventory, and in the partnership interest instantly following the distribution.

  Discuss a separate account called accumulated depreciation

Noodles recognized depreciation expense of $21,790. For purposes of this case, depreciation expense reduces property and equipment, net. Next week, we will discuss a separate account called accumulated depreciation.

  Have no effect on the current and acid-test ratios

Payment of a trade account payable of $64,500 would - Have no effect on the current and acid-test ratios.

  Establish the completeness of recorded debt

Which of the following is least likely to be an audit objective for debt? Determine the existence of recorded debt. Establish the completeness of recorded debt. Determine that the client has rights to receive proceeds relating to the redemption of de..

  Calculate the revenue effect of growth

Calculate the revenue effect of growth considering two fiscal years 2013 and 2014, with actual units sold in 2013 and 2014 are 11000 and 12500 units

  Calculate the value of the put if stock price decreases

The current stock price is $800. Use the risk neutral probability approach to calculate the value of the put if stock price decreases in the first month.

  Explain how would you obtain a copy of a statement pertinent

Can you obtain a copy of the full text of FASAB statements from this Web site? If not, explain how would you obtain a copy of a statement pertinent to federal agencies? What is the cost to purchase a statement?

  What is the amount of gain or loss on the disposal

A plant asset with a cost of $44,200 and accumulated depreciation of $36,300 is sold for $8,900. What is the book value of the asset at the time of sale? What is the amount of gain or loss on the disposal?

  What is the importance of turnover of accounts receivables

What is the importance of the turnover of Accounts Receivables? Why is it is essential for organizations to keep cash reserves on hands? Is it possible to still bring in a lot of revenue, but still be short on cash?

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