Find the required return, Finance Basics

Assignment Help:

Marbela Corporation's stock had a required return of 12.75% last year, when the risk-free rate was 6.4% and the market risk premium was 5.5%.  Now suppose the market risk premium declines by 1.5%.  The risk-free rate and Marbela's beta remain unchanged. What is the company's new required return?  (Hint: First calculate the beta, and then find the required return.)

 


Related Discussions:- Find the required return

Basel committee on banking supervision, Question 1: ‘The Basel II frame...

Question 1: ‘The Basel II framework provides a range of options for determining the capital requirements for, inter-alia, credit risk and operational risk to allow banks and s

Important points - creditors finances, Important Points - Creditors Finance...

Important Points - Creditors Finances When by using creditor's finances a company must consider: 1. That cost of finance is less than the Return that implies the rate shoul

Capital market - financial markets, Capital Market - Financial Markets ...

Capital Market - Financial Markets These are markets for long term funds along with maturity time of more than one year. As like of financial instruments required here are deb

Capital budgeting, Definition of 'Capital Budgeting': The process in w...

Definition of 'Capital Budgeting': The process in which a business calculates whether projects such as building a new plant or investing in a long-term risk are worth pursuing

Explain the operations of indian stock market, Explain the Operations of In...

Explain the Operations of Indian Stock Market. Meaning of Stock Exchange: Stock exchange means an organized market where securities issued by government organizations, compan

Determinants of Interest rate, What are the factors that affect the interes...

What are the factors that affect the interest rate and how?

Shareholders - measuring business performance, Shareholders - Measuring Bus...

Shareholders - Measuring Business Performance Shareholders Actual owners are interested in the company's both short and long term survival.  For this cause they will need

Financial markets, term paper about financial markets in pakistan

term paper about financial markets in pakistan

Valuation, (Interest-rate risk) Philadelphia Electric has many bonds tradin...

(Interest-rate risk) Philadelphia Electric has many bonds trading on the New York Stock Exchange. Suppose PhilEl''s bonds have identical coupon rates of 9.125% but that one issue m

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