What is the required rate of return on b stock

Assignment Help Finance Basics
Reference no: EM132666952

Stock A has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock?

Reference no: EM132666952

Questions Cloud

How did ancient western philosophy begin : On the basis of Joseph Vincenzo lectures on YouTube on pre-Socratic philosophy and Plato and the assigned texts of the Pre-Socratic fragments, provide three.
Ealth as human right : Article 25 of the 1948 UDHR and the Constitution of WHO are examples of positive expressions of health as a human right.
What is the bond yield to call-keenan industries : Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon rate with semiannual coupon payments, and a $1,000 par value.
Is any difference between vietnam gaap and ifrs and why : Is there any difference between Vietnam GAAP and IFRs in accounting treatment for goodwill?Evaluating the impact of that difference on quality of information
What is the required rate of return on b stock : Stock A has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B'
Did the company juul commit one or more illegal acts : Did the company Juul commit one or more illegal acts? If so, what are the illegal acts? If not, why not? Should other vaping companies be involved in this.
Effects-politics and regulatory control of tobacco use : Tobacco use is the primary cause of mortality in the United States today. Tobacco use is responsible for cancer, chronic obstructive pulmonary disease
Find what would the change in net income be : What would the change in net income be? Should Alpha go forward with the reduced selling price and new advertising campaign?
Find value today of a zero-coupon bond with par value : What is the value today of a zero-coupon bond with par value of $1,000 maturing in 12 years if the market rate of interest (yield to maturity) is 14%?

Reviews

Write a Review

Finance Basics Questions & Answers

  Steps in the analysis

At the 5% level of significance, what can you conclude? (Be sure to demonstrate that you understand all steps in the analysis - including the hypotheses).

  Compute austin company rate of return on stockholder equity

Compute Austin Company's rate of return on common stockholders' equity for 2016. Assume the company paid the minimum preferred dividend during 2016.

  Assignment-managerial accounting in business

You are the product line manager for a snow board manufacturing company based in Provo, Utah. As product line manager for the company

  Describe the balance-of-payments identity

Describe the balance-of-payments identity and discuss its implications under the fixed and flexible exchange rate regimes.

  Employer-sponsored matching

Milo has just become eligible for his employer-sponsored matching 401 K retirement plan. Milo is 35 and plans to retire at 65.

  What was bags breakeven point in units sold for 2010

BAGS, Inc. manufactures and sells golf balls. For 2010 it sold 1.0 million golf balls and ended the fiscal year with the following income statement.

  How much would the bond dealers make

How much would the bond dealers make in term of dollars on this bond if he dealt with a buye and seller at the sam time?

  What is float and its four basic components

What is the difference between availability float and clearing float, and from which perspective-collection or payment-is each relevant?

  People within the organization must be disguised

Consider: ?You may want to study your current organization if it is publically traded (all names of people within the organization must be disguised).

  What is the total value of ipo

What is the total value of this IPO if the required return for similar issues is 18%?

  What effect does workplace violence and hostile environments

What effect does workplace violence and hostile environments have on an organization and its employees

  Amount of the initial cash flow for expansion project

Other equipment costing $95,000 will be required. What is the amount of the initial cash flow for this expansion 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!

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