What will be the new portfolio beta

Assignment Help Financial Management

Reference no: EM132014474

1. GM common stock pays a constant annual dividend $1/share forever and its stock price is $20. If risk free rate is 1% APR, what is the risk premium of the stock?

2. You have a portfolio with a beta of 1.21. What will be the new portfolio beta if you keep 90 percent of your money in the old portfolio and 10 percent in a stock with a beta of 0.51? (Do not round intermediate calculations and round your answer to 2 decimal places.)

Reference no: EM132014474

Questions Cloud

The appropriate discount rate-assuming average risk : The appropriate discount rate, assuming average risk, is:

What is the npv of the project at stage one : What is the NPV of the project at stage 1 (year 0)?

What is phil weighted average cost of capital : What is Phil's weighted average cost of capital?

What is the erosion cost : Jamie's Motor Home Sales currently sells 1,000 Class A motor homes, 2,500 Class C motor homes, What is the erosion cost?

What will be the new portfolio beta : You have a portfolio with a beta of 1.21. What will be the new portfolio beta if you keep 90 percent of your money in the old portfolio.

Cumulative preferred has par value : Jefferson Electric 6.00% cumulative preferred has a par value of $25.00. Dividends are paid quarterly.

What would the new annual break-even revenue : What would the new annual break-even revenue (in dollars) if he continues to sell his pieces for $15?

What determines corporate bond yields : What determines corporate bond yields?

What is the enterprise value of the firm : How much additional debt does the firm need to borrow each year for the first 6 years? What is the enterprise value of the firm.

User Account

All Pages