Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 27, 2024

the current risk-free return is 3.5% and the market risk premium is 4% if the beta coefficient associated a firm's stock is 2.1. what is

the current risk-free return is 3.5% and the market risk premium is 4% if the beta coefficient associated a firm's stock is 2.1. what is the stocks required rate of return?

a. 11.9 b. 12.4 c. 13.1 d. 10.8 e. 15.8

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Public Finance And Public Policy

Authors: Jonathan Gruber

6th Edition

1319105254, 9781319105259

More Books

Students also viewed these Finance questions

Question

★★★★★

Deane Company issues $5 million, 10-year, 9% bonds at 96, with interest payable on July 1 and January 1.The straight-line method is used to amortize bond discount. (a) Prepare the journal entry to...

Answered: 1 week ago

Question

★★★★★

Liquid kerosene (essentially dodecane) is burned in air at 25 8C and 50% relative humidity with an air-fuel ratio of 20. Calculate the adiabatic flame temperature.

Answered: 1 week ago

Question

★★★★★

=+a) What might you recommend as a next step for developing a regression model? Why? M18_SHAR8696_03_SE_C18.indd 667 14/07/14 7:38 AM 668 CHAPTER 18 Building Multiple Regression Models The researcher...

Answered: 1 week ago

Question

★★★★★

You are a hospital administrator trying to raise capital to refurbish the hospital. Your local bank is reluctant to lend to you because you already have a large mortgage on the property on which the...

Answered: 1 week ago

Question

★★★★★

I need help with setting up the formulas for the below question (Related to Checkpoint 4.3) (Analyzing Profitability) In 2016, the Allen Corporation had sales of $61 million, total assets of $41...

Answered: 1 week ago

Question

★★★★★

Please answer all parts, Thank you! The following information is available for Blue Corporation for 2016 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $37,000....

Answered: 1 week ago

Question

★★★★★

The International Space Station considers what many believe to have been the ultimate international engineering project in history. The initial plans involved the direct participation of 16 nations,...

Answered: 1 week ago

Question

★★★★★

Two days after talking with Karen, Daniel received a packet of information from the mayor s office. The information included news clippings, minutes from community meetings, and the telephone numbers...

Answered: 1 week ago

Question

★★★★★

Decedent is a citizen of the Philippines and a resident of Quezon City, died leaving the following: Rest house in Batangas inherited from his father during marriage Car received as gift from his...

Answered: 1 week ago

Question

★★★★★

ion 16 of 21 > Identify whether each scenario is an example of a marginal cost, marginal benefit, or neither. Answer Bank a marginal cost. not marginal. a marginal benefit. Chipset, Inc. sells...

Answered: 1 week ago

Question

★★★★★

Choose 2-3 changes you would consider making to deal with some of the potential issues that might be leading to turnover. what key concepts you think apply, some potential solutions to the problem...

Answered: 1 week ago

Question

★★★★★

1. Should the job evaluation depend on an appraisal of the jobholders performance? Why? Why not?pg 87

Answered: 1 week ago

Question

★★★★★

2. Is Jack Carters policy of paying 10% more than the prevailing rates a sound one, and how could that be determined?pg 87

Answered: 1 week ago

Question

★★★★★

2. Our company now uses a point method to evaluate jobs for pay purposes, and each resulting job class also has a rate range associated with it. Sales associates are now paid a salary, not based on...

Answered: 1 week ago

Previous Question Next Question