What should the required rate of return be for this stock

Assignment Help Finance Basics
Reference no: EM13262496

You are considering buying a stock with a beta of 0.83. If the risk-free rate of return is 6.9 percent, and the expected return for the market is13.2 percent, what should the required rate of return be for this stock?

Reference no: EM13262496

Questions Cloud

Find which oxide thickness is minimum channel length : An n-channel MOS device in a technology for which oxide thickness is 20nm, minimum channel length is 1μm, k'n = 100μA/V2, and Vt=0.8 V operates in the triode region, with small vDS and with the gate-source voltage in the range 0V to +5V.
What is the speed of the center of mass of the sphere : A hollow sphere of radius 0.15 m, with rotational inertia I = 0.078 kg m2 about a line through its center of mass, What is the speed of the center of mass of the sphere at the initial position
What is the stocks predicted return : what is the stock's predicted return? Round your answer to two decimal places.
Calculate the degree of polarization of the transmitted beam : Consider an unpolarized lightwave incident from air onto a planar dielectric material of index of refraction 1.50. Calculate the degree of polarization of the transmitted beam in part b above
What should the required rate of return be for this stock : You are considering buying a stock with a beta of 0.83. If the risk-free rate of return is 6.9 percent, and the expected return for the market is13.2 percent, what should the required rate of return be for this stock?
Explain what is the wavelength of radiation : Work function of chromium metal is 4.37 eV. What is the wavelength of radiation that must be supplied to metallic chromium to release and electron with kinetic energy of 2.05*10^-18 J
How is diversification measured : How is diversification measured? What is diversification discount?
How to increase sales and market share : Analyze either Dasani(a Coke product) or AquaFina within the larger frame of the industry and the company - discuss and justify your recommendations, give strategic recommendations about how to increase sales and market share.
Explain what is the change in entropy when the bromine added : A chlorine atom can occupy one of the nine possible sites. When a bromine is added to the system it can occupy one of hte eight sites not already occupied by the chlorine so there are 9 x 8 or 72 possible microstates. What is the change in entropy..

Reviews

Write a Review

Finance Basics Questions & Answers

  Relaxation of credit standards

Lewis corporation is planning relaxing its credit standards to increase its currently sagging sales. As a result of the proposed relaxation, sales are expected to increase through 10 percent from 10,000 to 11,000 units during the coming year.

  Calculate average annual rate of return

In November of 1998 you bought 100 shares of Microsoft stock for $35.375 a share. In November of 2000, hearing about an unfavorable ruling against Microsft by a federal judge,

  Calculate wacc after tax

Capital Co. has a capital structure, based on current market values, that consists of 34 percent debt, 12 percent preferred stock, and 54 percent common stock.  Calculate WACC after tax in percent.

  Compute break even point for leverage between debt

You are comparing two possible capital structures for a firm. The first option is an all-equity firm. The second option involves the use of $3.8 million of debt.

  Computation of after tax rate of return on investment

Computation of after tax rate of return on investment Assume that federal taxes are not deductible against state taxes and vice versa

  Determine the opportunity cost

Suppose the United State can produce Toyotas at the cost of $18,000 per car and Chevrolets at $16,000 per car. In Japan, the cost of producing Toyotas 1,000,000 yen, and the cost of producing Chevrolets at 500,000 yen.

  Show the functions of the federal reserve board

Show the major functions of the Federal Reserve Board and recognize the role of the FED as the commercial bank of the US Treasury

  Writing a naked and covered call

Matt owns 500 shares of IKM stock. The market price of IKM is $51.74. Matt just sold five calls on IKM with a strike price of $50.

  Calculate the company debt-to-equity ratio

Jackie Cosmetics Company has total assets of $437,600,000 and a debt ratio of 0.27. Calculate the company's debt-to-equity ratio.

  Determine the components of the capital account

Determine the components of the capital account in the balance of payments? and estimate the components of the current account in the balance of payments?

  Computing payments

The Peking Duck Company buy from suppliers in a quarter are equal to 60% of the next quarter's forecast sales. The payables deferral period is 60 days.

  Find the maximum percent of stock

Nelson purchased 1,300 shares of stock for $12.75 a share. The initial margin requirement is 70% and the maintenance margin is 40%.

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