Explain the expected rate of return, Operation Management

Assignment Help:

Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the expected interest rate (cost of debt)?

Internal common stock: Jones Industries has a beta of 1.39. The risk-free rate as measured by the rate on short-term US Treasury bill is 3 percent, and the expected return on the overall market is 12 percent. Determine the expected rate of return on Jones's stock (cost of equity). Here are the details:

Jones Total Assets

$2,000,000

Long- & short-term debt

$600,000

Common internal stock equity

$400,000

New common stock equity

$1,000,000

Total liabilities & equity

$2,000,000


Related Discussions:- Explain the expected rate of return

Explain what is the union relations environment, What is the union relation...

What is the union relations environment today and what are the future trends in labour relations?

Explain changes in the environment, What changes in the environment provide...

What changes in the environment provided the opportunity for the Dewmocracy approach?

Explain regulatory organizations ccupational safety, "Regulatory Organizati...

"Regulatory Organizations" Please respond to the following: • Evaluate the effectiveness of JCAHOs recommendations for emergency preparedness. Discuss which recommendations should

Explain essential components of a marketing plan, What are the essential co...

What are the essential components of a well-balanced marketing plan?

Explain create a more motivated workforce, How can job design be used to cr...

How can job design be used to create a more motivated workforce? Be specific.

Describe american business management, Why has there been (and is still) su...

Why has there been (and is still) such strong opposition to the trade union movement by American business management?

What are two aspects of self-concept, ------------- and--------------------...

------------- and---------------------are two related aspects of self-concept/1. Self-esteem, self-monitoring/2.self-esteem, self-assessment, 3 self moitoring;self-assessment/4 sel

Plant layout, A plant layout should be designed in such a manner that ...

A plant layout should be designed in such a manner that it will provide safety and security of employees at all costs. Optimum plant layout calls for high operating e

Line balancing, what do you understand by line balancing? what happens if b...

what do you understand by line balancing? what happens if balance does not exist?

Write Your Message!

Captcha
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