Solution-What is the stock required rate of return

What is the stock required rate of return

Assignment Help Basic Computer Science

Reference no: EM131219728

The CIS Corporation's stocks have a beta of 2. The risk-free rate is 7.5% and the expected return on the market portfolio is 15%. The corporation presently pays a dividend of Rs.4 per share, and investors expect it to experience a growth in dividends of 10% per annum for many years to come.

What is the stock's required rate of return according to CAPM?
What is the stock's present market price per share, assuming this required return?
What would be the required rate of return and market price per share if the beta were 0.50? (Assume that the other things stay the same.)
Explain the change in required rate of return and market price per share in part.

Reference no: EM131219728

Questions Cloud

Determined that the cost of supplies on hand : On April 1, 2014 Maria Adams etablished Custom Realty. Maria completed the following transactions during the month of Aplril. Determined that the cost of supplies on hand was $300; therefore; the cost of supplies used was $ 900. Prepare an income sta..

Write a paper on biblical worldview essay : Write the given paper. - Foundational to the Christian faith is the belief that mankind is created in the image of God. Explain how this belief affects the way you interact with people within your chosen vocation.

Forcible overthrow of existing social and economic condition : Explain marx Karl's bourgeois/proletarian distinctions and why proletarian ends can be attained only by the forcible overthrow of existing social and economic conditions.

Find and sketch the capacity region : Multiplicative multiple-access channel. Find and sketch the capacity region of the following multiplicative multiple-access channel:

What is the stock required rate of return : What is the stock's required rate of return according to CAPM? What is the stock's present market price per share, assuming this required return?

Additional paid-in capital upon issuing the stock : On January 1, 2015, Crimson Corp., a closely held corporation, issued 5% bonds with a maturity value of $90,000, together with 1,500 shares of its $3 par value common stock, for a combined cash amount of $121,800. The market value of Crimson’s stock ..

Identity management is a critical function : Patient Identity Management is a critical function for healthcare facilities. List and explain five tips for successful patient identity management that you would give to hospital administrators and practitioners.

Show the related income tax disclosures : At the beginning of 2013, Norris Company had a deferred tax liability of $6,900, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. Prepare Norris's income tax journal entry ..

Explore the historical background of your favorite movie : In some cases, when a particular movie becomes popular, Hollywood's version of the become the accepted version. This paper gives you the chance to explore the historical background of your favorite movie.

User Account

All Pages

What is the stock required rate of return

Reference no: EM131219728

Reference no: EM131219728

Questions Cloud

Reviews

Write a Review

Basic Computer Science Questions & Answers

Identifies the cost of computer

Input devices

Cores on computer systems

Prepare an annual budget in an excel spreadsheet

Write a research paper in relation to a software design

Describe the forest, domain, ou, and trust configuration

Construct a truth table for the boolean expression

Evaluate the cost of materials

The marie simulator

What is the main advantage of using master pages

Describe the three fundamental models of distributed systems

Distinguish between caching and buffering

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT