What is the required rate of return on zoro stock

Assignment Help Finance Basics
Reference no: EM13301219

Zoro Corporation has a beta of 2.0. The risk-free rate of interest is 5%, and the return on the stock market overall is expected to be 13%. What is the required rate of return on Zoro stock?

a. 21%.
b. 41%.
c. 16%.
d. 13%.
e. none of the above

 

Reference no: EM13301219

Questions Cloud

Explain what is the concentration of h4io6 at equilibrium : Consider the reaction IO4 ^ - (aq) + 2 H2 O(l) =H4 IO6 ^ - (aq); Kc = 3.5 x 10^- 2 If you start with 27.0mL of a 0.901M solution of NaIO4, and then dilute it with water to 500.0 mL, what is the concentration of H4IO6^- at equilibrium
Calculate the power delivered by the force : A particle of mass 7.25 kg moves from rest at t = 0 under the influence of a single force of magnitude 42.5 N. Calculate the power delivered by the force
Determine the energy of the resulting free electron : A hydrogen atom is in its ground state when its electron absorbs a 48-keV photon. What's the energy of the resulting free electron
Explain what is the purpose of each of these washes : In the purification process, the organic layer is washed sequentially with 2 M NaOH, water, and saturated aqueous sodium chloride. What is the purpose of each of these washes and why is cold 2 M NaOH recommended
What is the required rate of return on zoro stock : Zoro Corporation has a beta of 2.0. The risk-free rate of interest is 5%, and the return on the stock market overall is expected to be 13%. What is the required rate of return on Zoro stock?
Calculate the net entropy change during one cycle : A Carnot engine operates between 27C and 927C and preforms 4800 J of work. Calculate the net entropy change during one cycle
Explain a rain sample has a delta value of smow : A rain sample has a delta value of 18O of -7 0/00 What is the 18O/16O value (R sample) of the sample, if R SMOW = 0.0020052? Does this have something to do with (Rsample-Rstd)/Rstd x1000
Determine the amount of dollars to be received : You will exercise the option in 90 days (if at all). You expect the spot rate of the pound to be $1.57 in 90 days. Determine the amount of dollars to be received, after deducting payment for the option premium.
Conduct a full test, at the 5percent level of significance : Conduct a full test, at the 5% level of significance, to establish whether there is a statistically significant difference between the population mean times in the two banks.  (Assume that the samples are drawn from populations that are approximately..

Reviews

Write a Review

Finance Basics Questions & Answers

  Loan amortization schedule and determining interest rate

What is a loan amortization schedule? How would you use it to determine your loan interest rate?

  What is the tax effect of the sale of the existing asset

The new machine will be depreciated under MACRS using a five-year recovery period. The firm has a 12 percent cost of capital and a 40 percent tax on ordinary income and capital gains.

  Determine the old and new break-even

You received an email from Carl operations manager for the California Container division. They produce packaging for cell phones. Carl understands that his product is an important cash producer for firm.

  Briefly trace its development from a sole proprietorship

Imagine a startup company of your own and briefly trace its development from a sole proprietorship to a major corporation with a focus on how that development would be financed.

  Compute the realized return on investment

Suppose you purchse a very risky bond that promises a 9.5% coupon and return of the $1,000 principal in 10 years. You pay only $500 for the bond.

  Computing the internal rate of return of investment

Compute the internal rate of return of each investment?

  Calculate the net present value of the system

Calculate the net present value of the system, given that the law firm's weighter average cost of capital is 12%.

  How to finding the price of the bond

How to Finding the price of the bond of the Mangold Corporation has two different bonds currently outstanding

  What is the effective cost of borrowing in this case

Your firm has an average collection period of 25 days. Curret Practice is to factor all receivables immediately at a 1.5 percent discount. What is the effective cost of borrowing in this case?

  Determine the rest in the risk free asset

Nico purchsed 100 shares of Cisco Systems stock for $24.00 per share on January 1, 2002. He received a dividend of $2.00 each share at the end of 2002 and $3.00 each share at the end of 2003

  Computation of ratios for given financial statement data''s

Computation of ratios for given financial statement data's and you have been provided with the financial statements for Grannie's Closet for the last three years

  What are the expected cash receipts for march

It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are..

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