FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question text XY Corp stock will pay a dividend of $2 next year. Its current price is $27 per share. The beta for the stock

Question text
XY Corp stock will pay a dividend of $2 next year. Its current price is $27 per share. The beta for the stock is 1.2 and the expected return on the market is 16%. If the risk free rate is 9.2%, what is the expected return rate for this company?
19.555 1955.

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

Students also viewed these Finance questions

Question

describe the research that contributes to our understanding of qualitative demands at work.

Answered: 1 week ago

Question

★★★★★
Calculate the annual cash dividends required to be paid for each of the following preferred stock issues: Required: a. $3.75 cumulative preferred, no par value; 200,000 shares authorized, 161,522...

Answered: 1 week ago

Question

★★★★★
JAVA PROGRAMMING Exercise 1: Employees salary Create a class called Employee that includes three pieces of information as instance variablesa first name (typeString), a last name (typeString) and a...

Answered: 1 week ago

Question

★★★★★
ounds good. I'll get the team right on it . m sure our bankers have been expecting his. What is Tesla's current market cap? Incorrect, try again. Note market capitalization is the sum of all...

Answered: 1 week ago

Question

★★★★★
A welding process has been found to produce a bead which can be approximated by a triangle with its base equal to five times its height. Derive an equation for the bead Height based upon the volume...

Answered: 1 week ago

Question

★★★★★
Hey! Struggling with this question any help would be appreciated! A committee of 7 must be chosen to decide on a new school uniform. There are 9 adults and 19 students who wish to be on the...

Answered: 1 week ago

Question

★★★★★
54. The following are production and cost data for two products, A and B, produced in batches of 100 units. Contribution margin per batch Machine set-ups needed per batch Product A $450 Product B...

Answered: 1 week ago

Question

★★★★★
Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a normal...

Answered: 1 week ago

Question

★★★★★
Question 1 (2 points) According to McGregor's X-Y theory, which of the following is a characteristic of Theory Y managers? O 1) They believe that most workers avoid responsibility. O 2) They believe...

Answered: 1 week ago

Previous Question Next Question