Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 07, 2024

ABC, Inc., has a beta of 0.94. The risk-free rate is 3.37% and the market risk premium is 4.57%. What is the required rate of

ABC, Inc., has a beta of 0.94. The risk-free rate is 3.37% and the market risk premium is 4.57%. What is the required rate of return on ABC's stock?

Note: Convert your answer to percentage and round off to two decimal points

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Building Your Future

Authors: Robert B. Walker, Kristy P. Walker

1st edition

9780077861728, 978-0073530659

More Books

Students also viewed these Finance questions

Question

★★★★★

Will overtime premiums affect direct labor variances? If so, which ones?

Answered: 1 week ago

Question

★★★★★

9. long-run versus short-run economic cost Suppose Ralphs long-run economic cost curve is again given by C(q; P) = 300q 20q2 + q3 where q denotes output in this conveniently single product firm. (a)...

Answered: 1 week ago

Question

★★★★★

=+4. Here is the regression for Exercise 3 with an indicator variable: 150 50 100 150 Budget ($M) 100 50 US Gross ($M) Dependent variable is: USGross($M) R-squared = 0.193, Adjusted R-squared: 0.166...

Answered: 1 week ago

Question

★★★★★

Marcellus Jackson, the CFO of Mac, Inc., notices that the tax liability reported on Macs tax return is less than the tax expense reported on Macs financial statements. Provide a letter to Jackson...

Answered: 1 week ago

Question

★★★★★

Application / Code should not be released until Critical / High Severity & Potential vulnerabilities are resolved. True or False

Answered: 1 week ago

Question

★★★★★

A 6 12-in. plate is subjected to four loads as shown. Find the resultant of the four loads and the two points at which the line of action of the resultant intersects the edge of the plate. 50 lb 20...

Answered: 1 week ago

Question

★★★★★

Moranda and Sills, LLP, has served for over 10 years as the auditor of the financial statements of Highland Bank and Trust. The firm is conducting its audit planning for the current fiscal year and...

Answered: 1 week ago

Question

★★★★★

Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise...

Answered: 1 week ago

Question

★★★★★

1.You decided to sell Treasury bill futures contracts with a quoted price was 92-50. When you close this position, the quoted price was 91-75. Determine the profit or loss per contract, ignoring...

Answered: 1 week ago

Question

★★★★★

DBC, TDABC, and ABC The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and...

Answered: 1 week ago

Question

★★★★★

Exercise 4-1 (Algo) Computing revenues, expenses, and income LO C1 Fill in the blanks in the following separate income statements a through e. Sales Cost of goods sold Merchandise inventory,...

Answered: 1 week ago

Question

★★★★★

b 4th Quarter Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter...

Answered: 1 week ago

Question

★★★★★

1: Using the trditional approach to assigning overhead costs to academic programs: Predetermined overhead rate: Total overhead costs Full-time students per student Overhead costs assigned to academic...

Answered: 1 week ago

Question

★★★★★

Are there any natural hazards that you or your community can ignore because your geographic location precludes you from risk? What are those hazards, and why can you ignore them?

Answered: 1 week ago

Question

★★★★★

Do any natural hazards affect your community routinely? If so, what actions has the community taken to mitigate these recurrent hazards? Have these actions been successful in reducing the...

Answered: 1 week ago

Question

★★★★★

Are you aware of the hazards faced by your community, including those that may only happen once every few decades (and therefore may not have occurred in your lifetime)?

Answered: 1 week ago

Previous Question Next Question