Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The beta of company XYZ's stock is 1.5. The annual risk-free rate is 2% and the market risk return is 10%. What is the expected
The beta of company XYZ's stock is 1.5. The annual risk-free rate is 2% and the market risk return is 10%. What is the expected return of the company's stock? A. 16% B. 11% C.14% D.23% QUESTION 6 You are considering an investment in a technology company. The beta of technology companies is 1.8. The annual risk-free rate is 2% and the annual market return is 10%. The expected annual profit from the software subscription is $200,000 and it is expected to grow at the rate of 7% per year. What is the maximum price you are willing to pay for the company? A. $1,008,153.55 B. $2,370,925.78 C. $2,250,000.00 D. $2,127,659.57
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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