User Account

All Pages

What is the risk premium

Assignment Help Finance Basics
Reference no: EM131071890

The 1.2 million preferred shares of Mighty Machines, which pay a dividend rate of 6.5 percent on a stated value of $40, are currently worth $42,000,000.

What is the risk premium associated with these preferred shares if the risk free rate is 4.25 percent?

Reference no: EM131071890

Questions Cloud

Write a paper on the city warsaw in located in poland : Write a Paper on the CITY Warsaw in located in Poland?
Computing the firm price-earnings ratio : Suppose a firm has just reported an EPS of $2.50 and expects to maintain a dividend payout ratio of 40 percent. What is the firm's price-earnings ratio if its return on equity is 12 percent and the required return is 11.5 percent?
Measurement of loudness based on sound power : When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam.
What were some of the main features of persian society : Citing specific evidence from Chardin's Travels in Persia (not from the textbook), what were some of the main features, or characteristics, of seventeenth-century Persian society?
What is the risk premium : What is the risk premium associated with these preferred shares if the risk free rate is 4.25 percent?
What is your average power output : Assume running consumes 9393 Calories per mile. If you run 1111-minute miles, what is your average power output, in watts, during a 11-hour run
Qualitative factor that should be considered prior : For each of the following situations, indicate a qualitative factor that should be considered prior to making the decision:
Determine the volume of the largest possible cylinder : Determine the volume of the largest possible cylinder that can be inscribed in a sphere of radius x
How the scene supports or challenges sigals account : Choose a scene from film "Day After Trinity" and discuss 1) How the scene supports or challenges Sigal's account, and 2) How it helps us understand the concept of ‘logic of war' as discussed by Misa.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the implied probability of default on a-rated bonds

What are the implied forward rates for both an 82-day Treasury and an 82-day A-rated bond beginning in 93 days? Use daily compounding on a 365-day year basis.

  Stock price and dividend problem-texas corporation

Texas Corporation stock pays a dividend on every July 15. In 2008: the dividend is $3.00, in 2009 $3.25, in 2010 $3.50, and in 2011 and all the subsequent years it will be $4.00.

  The money market to cover the resulting shortfall in

studebaker is eligible to put 12000 before tax dollars each year into a tax deferred annuity tda. in order to invest

  Possible capital project using the npv method

The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method.

  Expected return and standard deviation

You have $10,000 for investment. What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z?

  Grossett corporation has provided the following data

grossett corporation has provided the following data concerning a proposed investment projectinitial

  Prepare consolidation journal entry at the date

Nick Ltd acquired 100% of the issued capital of Wing Ltd on 1 July 2011 for $270000. The statements of financial position of the companies immediately after the acquisition are provided below. All assets have been reported following fair value.

  Describe at least two assets not recorded on the balance

a. describe at least two assets not recorded on the balance sheet.b. explain how an analyst evaluates unrecorded

  Assuming that flotation costs are expected to be 15 per

your firm needs to raise 10 million. assuming that flotation costs are expected to be 15 per share and that the market

  Computation of initial cash outflow

Computation of initial cash outflow and what is the minimum price at which you should offer to supply the jets

  What is the company''s average balance in accounts payable

Question 1 ABC Company writes 330 checks a day for an average amount of $489 each. These checks generally clear the bank in 2 days. In addition, the firm generally receives an average of $176,042 a day in checks that are deposited immediately. Deposi..

  Draw on a diagram the capital market line derived

The expected return on the Market Portfolio M is E(rM)=15%, the standard deviation is ?M=25% and the risk-free rate is rf=5%. The CAPM is assumed to hold.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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