User Account

All Pages

What required return if country risk premium part of market

Assignment Help Accounting Basics
Reference no: EM132814833

Problem 1: The risk free rate is 5% applicable for a Philippine USD denominated bond with an expected yield of 5%. While it is the given value, it is expected that the market will provide a return of 15%. A similar Australian Bond is expected to yield 2.50%, where the standard deviation for debt and equity are 0.50 and 0.50, respectively. The applicable beta is 1.2. The required return, if the country risk premium is part of the market premium is

a. 17%
b. 19.50%
c. 20%
d. 20.13%

Reference no: EM132814833

Questions Cloud

What the terminal year after-tax nonoperating cash flow : The firm's cost of capital is 10 percent and its marginal tax rate is 30 percent. The terminal year (Year 5) after-tax nonoperating cash flow is closest to
Social responsibility to their stakeholders : Do for-profit and non-profit organizations have a social responsibility to their stakeholders?
Why is important to have segregation of duties in the SDLC : Why is important to have segregation of duties in the System Development Life Cycle. Include one specific example using a system development scenario.
Describe clorox business model : Describe Clorox's business model. Provide examples and strong explanations.
What required return if country risk premium part of market : What the required return, if the country risk premium is part of the market premium is? The risk free rate is 5% applicable for Philippine USD denominated bond.
Project Selection methodologies : PMBoK's Knowledge areas and the Project Management Lifecycle and Project Selection methodologies
Evaluating company environment : How to recognize the factors in a company's broad macro-environment that may have strategic significance.
What is the best quantitative method for research : What is the best quantitative method for research and what are the strength and weaknesses of this selected method?
Compare various quantitative methods : Compare various quantitative methods and how each method enables researchers to design the correct series of questions and eventually hypotheses to prove the th

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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