User Account

All Pages

What would be the return on the stock

Assignment Help Finance Basics
Reference no: EM132342188

You are holding a stock that has a beta of 3.37 and is currently in equilibrium. The required return on the stock is 31.84% and the return on a risk-free asset is 7.0%. What would be the return on the stock if the stock's beta increased to 4.68 while the risk-free rate and market return remained unchanged?

Reference no: EM132342188

Questions Cloud

How much can he afford to borrow to purchase a bmw : He can afford to make repayments of $200 per month for 5 years. If the interest rate is 7.5 percent, how much can he afford to borrow to purchase a BMW?
Which financial markets have you used recently : Does the efficient market hypothesis apply to all financial markets? Explain.
What is the expected rate of return of rand corporation : Rand Corporation has a 0.5 probability of a return of -0.3, a 0.2 probability of a rate of return of 0.07, and the remaining probability of a 0.54
What equal annual deposits must you make each year : What equal annual deposits must you make each year to reach your retirement goal?
What would be the return on the stock : What would be the return on the stock if the stock's beta increased to 4.68 while the risk-free rate and market return remained unchanged?
Calculate the pay back period : A. Calculate the pay back period. B. Calculate the projects net present value.
Inventory turnover at retail : Assume Staley's had net sales of $72,000 per day, beginning inventory of $22,000, and ending inventory at retail of $18,900.
What would the annual yield to maturity : The bonds have a par value of 1000 a current price of 1096 and will mature in 11 years. What would the annual yield to maturity be on the bond if you purchased
Fresh fruit inc has a par value bond : What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?

Reviews

Write a Review

Finance Basics Questions & Answers

  What are some disadvantages of low-cost leadership

What are some disadvantages of low-cost leadership? Is it possible to have a differentiation orientation and a low-cost orientation at the same time?

  Value of account in exactly one year

1. A couple invests $11,691.00 today in a money market fund that pays 6.00% per year. What is the value of this account in exactly one year?

  Estimate the cost of existing equity

Why is estimating the cost of common equity more difficult than estimating the cost of debt or preferred stock?

  Raw materials inventory journal entries

The balance in Sedona Company's raw materials inventory account was $110,000 at the beginning of September. Raw materials purchased during the month

  Maximum thermal efficiency for an otec

How to plot the maximum thermal efficiency for an OTEC facility operating with a temperature difference range of 10°C

  Calculate approximate current market price of common stock

Big Tom's stock is not expected to pay cash dividends for three years. In years 4, 5, and 6 the cash dividend will be $6 a year, and year seven to infinity the cash dividend will be $8 a year.

  How is a cds similar to insurance

Why might AIG's computer models have given an incorrect forecast of the likelihood of the firm having to make a payment on the CDSs they were selling?

  The coupon rate on the debt is 75 percent what is the

ernst electrical has 9000 shares of stock outstanding and no debt. the new cfo is considering issuing 80000 of debt

  Standard deviation of the estimated returns

What's the standard deviation of the estimated returns? (Hint: Use the formula for the standard deviation of a population, not a sample.)

  What aspects of work stress are revealed in this case

What suggestions can you make to the company for decreasing the stressors in the position of telemarketer?

  What financing option?

Financing Strategy for Renewable Energy

  What is peterson ebitda coverage ratio

It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt. What is Peterson's EBITDA coverage ratio?

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