What is the required rate of return on stock with beta

Assignment Help Financial Management
Reference no: EM131851129

1. Assume that the risk-free rate is 7% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places.

2. Why do banks limit proprietary lending? Short answer please.

3. For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value $ 12 4 % $ 18,928 4 9 43,117 16 12 806,382 21 11 663,816.

Reference no: EM131851129

Questions Cloud

Explain community property rights : Explain Community Property Rights and the recognized two kinds of property. As of 2015, how many states have adopted the concept
Internal characteristics of the company : When choosing a strategy, is it mostly about identifying one that's compatible with internal characteristics of the company or external characteristics
Power of the critical incident technique : To get an idea of the power of the critical incident technique, try it yourself with reference to restaurant service. Think of a time when, as a customer
Compare and contrast the different management theories : Compare and contrast the different management theories - Principles of Social Responsibility and Ethical Behavior
What is the required rate of return on stock with beta : What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places.
What form of business organization should be selected : You also know that another manufacturer of widgets has suffered three product liability lawsuits totaling 300,000 dollars within the past year.
Richest man in the world : Bill Gates may be considered one of the world's most effective strategic thinkers in history. "He Changed the Way the world works...and plays."
How you would recommend the client approach : Sourcing Approach (how you would recommend the client approach related to this project scope)
List all layers of the skin that have been damaged : List ALL layers of the skin that have been damaged. What tissue repair process causes the blistering? List all of the body functions that may be disrupted.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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