What is the required rate of return on steve services stock

Assignment Help Finance Basics
Reference no: EM13263088

Steve Services stock has a beta of 1.4. The risk-free rate is 6.7%, and the expected return on the market is 8%. What is the required rate of return on Steve's Services stock.

Reference no: EM13263088

Questions Cloud

Changes in a dna molecule may have no effect on the protein : the following changes in a DNA molecule may have no effect on the protein for which the DNA codes
What is the energy output of the machine per second : An electric motor with a 2.7-hp output drives a machine with an efficiency of 35%. What is the energy output of the machine per second
Determine what mah capacity should the batteries have : A student project requires a 6 V DC power supply that can source 300 mA. The batteries for the power supply must last for a minimum of 8 hours of continuous operation. NiMH rechargeable batteries in AA size are to be used.
What is the portfolio beta : Susan Richmand has $150,000 invested in a 2-stock portfolio. $43,600 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.70 and Y's beta is 0.80. What is the portfolio's beta?
What is the required rate of return on steve services stock : Steve Services stock has a beta of 1.4. The risk-free rate is 6.7%, and the expected return on the market is 8%. What is the required rate of return on Steve's Services stock.
Define what is the percentage of salt by mass in the mixture : A mixture is made by combining 1.39 lb of salt and 5.07 lb of water. What is the percentage of salt (by mass) in this mixture?
Estimate the area in terms of number of 1-bit full adders : Estimate the area in terms of number of 1-bit full-adders and additional 2-input logic gates. For performance, use the timing analysis tool provided in the Xilinx Tools as follows: In the Process Window, go to Implement Design
Who is your u.s. house of representative : Who is your U.S. House of Representative and how long has he/she been in the Congress? What part of his/her biography impresses you the most?
Detection of an isolated neutron star : A binary system is formed with a neutron star and another star that has overflowed its Roche lobe. How does the detection of this binary differ from the detection of an isolated neutron star?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the 6 monthly discount factors

Calculate the 6 monthly discount factors D(t) and the semi-annual zero coupon rates z(t), where t = 0.5, 1, 1.5, ., 9.5, 10. (2) Using the discount factors derived in (1), calculate the price of a 4½ year semi-annual coupon bond with an annual coupon..

  What are the investment options for retirement plans

What are the Investment options for retirement plans and How much money will she need to withdraw each year starting at age 65

  Determine the npv at time period zero of the cash flows

Recall that this step determines the amount that could be deposited today, to satisfy the education funding need

  Sales is expected to be carried out without any expansion

Determine Upton's projected external capital requirement if the increase in sales is expected to be carried out without any expansion of fixed assets.

  What is the firms cost of preferred stock

The 8 percent preferred stock of Home Town Brewers is selling for $47 a share. What is the firm's cost of preferred stock if the tax rate is 0.44 and the par value per share is $120?

  Determine the rate of return on a bond

Determine the rate of return on a bond that pays a coupon rate of 9 percent, has a par value of $1,000, matures in five years and is currently selling for $714?

  Computation of issue price return and market price on bonds

Computation of issue price return and market price on bonds and Calculate the yield to maturity assuming the investor buys the bond at the following price

  Developing a wbs for this project

Determine the main advantages of developing a WBS for this project. Support your response.

  Probability that selected person sleeps more than 8 hours

Compute the probability that random selected person sleeps more than 8 hours?

  Corporation''s benefit

IF JAR Inc's 2008 TAXABLE INCOME WAS $85,000. AND IF 2009 TAXABLE LOSS IS $35,000, the TAX RATE 40% WOULD IT BE POSSIBLE TO UTILIZE THE TAXABLE LOSS FROM 2009 TO THE CORPORATION'S BENEFIT

  What is the dividend yield

You expect a share of stock to pay dividends of $1.10, $1.35, and $1.60 in each of the next 3 years. You believe the stock will sell for $21 at the end of the third year.

  Calculate expected return and standard deviation

Jane is planning investing in three different stocks or creating three distinct two-stock portfolios. Jane considers herself to be a rather conservative investor.

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