What is the stock required rate of return

Assignment Help Accounting Basics
Reference no: EM132726816

Problem - A stock has a beta of 0.8. Assume that the risk-free rate is 5.5% and that the market risk premium is 6%. What is the stock's required rate of return?

Reference no: EM132726816

Questions Cloud

Develop an introduction with a thesis statement : Should the law allow an employer to fire an employee without a good reason? Conduct research to provide examples to support your position and use your own.
Asymmetric and symmetric encryption : What is the difference between Asymmetric and Symmetric encryption? Which one would you use for your business, and why?
Does the position of rich countries as giants : Does the position of rich countries as giants in the economic chain threaten the status of less developed countries in the global market?
Would recommend mxm to build the plant and discuss why : The building is estimated to have a useful life of 10 years,Compute the net present value for this investment. Would you recommend MXM to build the plant?
What is the stock required rate of return : A stock has a beta of 0.8. Assume that the risk-free rate is 5.5% and that the market risk premium is 6%. What is the stock's required rate of return
Different functions and business units : What are the pros and cons of having risk officers as part-time assignments within different functions and business units?
Make journal entry to account for transactions in enterprise : Metro Bus is accounted for as a County Enterprise Fund. Make journal entries to account for the following 2008 transactions in the Enterprise Fund.
What is the estimated beta of the investor portfolio : Apple's beta is estimated to be 1.20, Ford's beta is estimated to be 0.80, and Walmart's beta is estimated to be 1.0. What is the estimated beta of the investor
Strong educational programs : At UC, it is a priority that students are provided with strong educational programs and courses that allow them to be servant-leaders in their disciplines

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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