What must the beta of stock be

Assignment Help Financial Management

Reference no: EM131333513

A stock has an expected return of 15.9 percent, the risk-free rate is 6.35 percent, and the market risk premium is 7.4 percent.

What must the beta of this stock be? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

Beta

Reference no: EM131333513

Questions Cloud

Stock is expected to have year end dividend : A stock is trading at $85 per share. The stock is expected to have a year-end dividend of $3 per share (D1 = $3), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 12%. What is your forecast of..

Which is also its value of debt plus equity : Fethe Inc. is a custom manufacturer of guitars, mandolins, and other stringed instruments that is located near Knoxville, Tennessee. Fethe's current value of operations, which is also its value of debt plus equity, is estimated to be $5 million. Feth..

General journal entries in financial accounting : Need help with general journal entries in financial accounting? Accounting period July 1 to the 31, 2013. Paid $3,000 for six month rent. Purchased ne equipment that cost $40,000 by signing a 3 year, 6% note payable. The note and interest will be pai..

Describe business law in the kingdom of saudi arabia : Legislative and Regulative Sources Task Details 1. Use online/offline resources to describe business law in the Kingdom of Saudi Arabia. Structure your report neatly with a proper introduction and conclusion. Information on all the following topic..

What must the beta of stock be : A stock has an expected return of 15.9 percent, the risk-free rate is 6.35 percent, and the market risk premium is 7.4 percent. What must the beta of this stock be?

What is intrinsic value of deployment specialists stock : Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 25% for two years and then at 6% thereafter. If the required return for Deployment Specialists is 11.5%, what is the intrinsic value of Deployment Specialists st..

Compare the various forms of business ownership : Compare the various forms of business ownership as found in our textbook--Chapter 5. What are the advantages and disadvantages of each form? Which one would be best for a small business, or one intending to increase in size? What advice would you off..

Discuss risk and protective factor for juvenile delinquency : Discuss the most important risk and protective factor for juvenile delinquency. Support your answer. What intervention or prevention can we use to reduce the effects of your chosen risk factor

Summarize the youth victimization : Summarize the "Youth Victimization: Prevalence and Implications" report. In your assignment, discuss the strengths and weaknesses of this study

User Account

All Pages