BlackRock is planning to make an equity investment in PayPal Inc. They need the expected rate...
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BlackRock is planning to make an equity investment in PayPal Inc. They need the expected rate return on this investment to compare it to an alternative investment. Use the CAPM to find it. The expected return of the market is 9% and the return on a risk free asset equals 2.3%. PayPal's Beta equals 1.9 and projects operating income of $8,858,041. Enter your answer as a full percentage number with two decimals, for example, for 12.54% enter 12.54 only. BlackRock is planning to make an equity investment in PayPal Inc. They need the expected rate return on this investment to compare it to an alternative investment. Use the CAPM to find it. The expected return of the market is 9% and the return on a risk free asset equals 2.3%. PayPal's Beta equals 1.9 and projects operating income of $8,858,041. Enter your answer as a full percentage number with two decimals, for example, for 12.54% enter 12.54 only.
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Answer rating: 100% (QA)
Using the CAPM formula Expected return on equity investment Riskfree rate BetaE... View the full answer
Related Book For
Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
Posted Date:
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