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PLEASE ANSWER ALL PARTS!!!! Part A) Part B) Part C) The historic beta of an asset is 1.8 ; the risk-free rate is 5%; and
PLEASE ANSWER ALL PARTS!!!!
Part A) Part B)
Part C)
The historic beta of an asset is 1.8 ; the risk-free rate is 5%; and the market return is 10%. If investors have become more risk-averse due to recent geopolitical events, and the market return rises to 11%, what is the required rate of return for the same asset? Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, is 10%; and that the coefficient of variation, CV, is 0.75 . Calculate the upper bound of the range ofpected return outcomes associated with the following probability of occurrence: 99%. Note: You only need to give the upper bound of this range. a. 0.20 to 0.29 b. 0.30 to 0.39 c. 0.40 to 0.49 d. 0.50 to 0.59 e. 0.60 to 0.69 Your firm, People's Consulting Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 10% preferred stock issue would be sold at its par value of $35 per share. Flotation costs would total $5 per share. Calculate the cost of this preferred stock. NOTE: Please provide your answer to one decimal place and do not include the percent sign. If your answer is 2.453%, enter 2.4Step by Step Solution
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