Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Humana (HUM) is in the health care service industry with a Beta is 0.9 and subject to a tax rate of 40%. HUM has $24.31B

Humana (HUM) is in the health care service industry with a Beta is 0.9 and subject to a tax rate of 40%. HUM has $24.31B of long term debt and according to latest quote has a market capitalization of $50.1B . Given the 10-year Treasury rate at 0.86% and market return is 5% what percentage of HUM risk is attributed to financial risk?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

A Tiny Book On Personal Finance Saving And Investing Budget Save Invest Retire

Authors: David S. Shekmer

1st Edition

179576385X, 978-1795763851

More Books

Students also viewed these Finance questions

Question

What is a cumulative preferred stock?

Answered: 1 week ago