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

Question

1 Approved Answer

The real risk-free rate is 4.50%, investors expect a 2.50% future inflation rate, the market risk premium is 5.00%, and Krogh Enterprises has a beta

The real risk-free rate is 4.50%, investors expect a 2.50% future inflation rate, the market risk premium is 5.00%, and Krogh Enterprises has a beta of 1.40. What is the required rate of return on Krogh's stock? A. 14.15% B. 14.45% C. 14.60% D. 14.30% E. 14.00%

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

Venture Capital And The Finance Of Innovation

Venture Capital And The Finance Of Innovation

Authors: Andrew Metrick

1st Edition

0470074280, 9780470074282

More Books

Students also viewed these Finance questions

Question

★★★★★
(a) Show that the volume of a segment of height h of a sphere of radius r is V = 1/3 Ïh2 (3r - h) h

Answered: 1 week ago

Question

★★★★★
What is meant by the term management by exception? AppendixLO1

Answered: 1 week ago

Question

★★★★★
3. Contrast the evidence on the effectiveness of treatment for violent offenders and sexual offenders.

Answered: 1 week ago

Question

★★★★★
To speed relief to isolated South Asian communities that were devastated by the December 2004 tsunami, the U. S. government doubled the number of helicopters from 45 to 90 in early 2005. Navy admiral...

Answered: 1 week ago

Question

★★★★★
Stark, Inc., produces and sells a unique robot antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been reported for the first...

Answered: 1 week ago

Question

★★★★★
Earthie's Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 83% is collected in the month of sale, 12% is collected the month after the sale, and 5% is collected...

Answered: 1 week ago

Question

★★★★★
The charges q and 2 q of mass 2 m and mare separated at a distance, so that they feel no kind of force. Then, find the ratio of 9 m (U.P.S.EE)

Answered: 1 week ago

Question

★★★★★
te: April 13, by CASE STUDY: Decision relating to closing a Plant Allision Inc. (Al) manufactures seats for automobiles, vans, trucks, and boats. The company has a number of plants, including the...

Answered: 1 week ago

Question

★★★★★
Calculate the ratio of Coulomb's force to the gravitational force between two electrons kept at a certain distance 'r'.

Answered: 1 week ago

Question

★★★★★
When budgeting projects using Agile methods, which statement BEST describes spike? a. Short, time-boxed effort to test the concept to reduce risk b. Perform as much testing and risk reduction early...

Answered: 1 week ago

Question

★★★★★
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise...

Answered: 1 week ago

Question

★★★★★
Suppose Eco Threads does decide to keep everyone fully employed and instead cuts pay rates to obtain the required budget savings. Based on what you learned here, specifically what concerns would you...

Answered: 1 week ago

Question

★★★★★
Although the case with OFCCP is closed, we wonder if there are any less discriminatory explanations possible for why our women sales reps on average earned less than men. If so, what are they?

Answered: 1 week ago

Question

★★★★★
Similarly, is Carters malefemale differential wise? If not, why not?

Answered: 1 week ago

Previous Question Next Question