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

Question

1 Approved Answer

Zoom Inc. has a stock with a beta of 1.20, the current risk-free rate is 2 percent, the average investor has a required rate of

image text in transcribed

Zoom Inc. has a stock with a beta of 1.20, the current risk-free rate is 2 percent, the average investor has a required rate of return of 7 percent. What is the required rate of return for Zoom Inc.? a. 12.80% b. 11.19% c. 8.00% d. 10.40% e. 7.00%

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

End Of Online Shopping The The Future Of New Retail In An Always Connected World

End Of Online Shopping The The Future Of New Retail In An Always Connected World

Authors: Wijnand Jongen

1st Edition

981327476X, 978-9813274761

More Books

Students also viewed these Finance questions

Question

★★★★★
Why would management be willing to accept somewhat inaccurate costs from the cost management system? What sacrifices would be necessary to obtain more accurate costs?

Answered: 1 week ago

Question

★★★★★
Two pumps can be used for pumping a corrosive liquid. A pump with a brass impeller costs ` 40,000 and is expected to last for three years. A pump with a stainless steel impeller will cost ` 95,000...

Answered: 1 week ago

Question

★★★★★
=+chapter to discuss the mechanisms through which a permanent transfer from Poland to the Czech Republic would affect the real zloty/koruna exchange rate in the long run.

Answered: 1 week ago

Question

★★★★★
The management of a chain of fast-food restaurants wants to investigate the relationship between the daily sales volume (in dollars) of a company restaurant and the number of competitor restaurants...

Answered: 1 week ago

Question

★★★★★
Zoom Inc. has a stock with a beta of 1.20, the current risk-free rate is 2 percent, the average investor has a required rate of return of 7 percent. What is the required rate of return for Zoom Inc.?...

Answered: 1 week ago

Question

★★★★★
3. Answer the following questions. a. State the empirical rule. b. Make a connection between your answers to questions 1 and 2, and the empirical rule. (i.e what have you shown with your answers to 1...

Answered: 1 week ago

Question

★★★★★
Agile PMs must sense and align individuals, teams, and stakeholders. Which of the following is NOT a way to empower others? Please choose the best answer below: Establishing systems of ownership...

Answered: 1 week ago

Question

★★★★★
You and your friend Olivia are both volunteers at a cat rescue. The shelter supervisor asks the two of you to clean out kennels and haul bags of cat food from the donation area to the storage area....

Answered: 1 week ago

Question

★★★★★
1} A centrifuge is spinning at a rate of 2000 revolutions per minute (rpm). How many milliseconds (ms) will it take to complete 5 revolutions

Answered: 1 week ago

Question

★★★★★
Identity Theft Resource Center (ITRC) provides consumer and victim support, public education, and advice. Marlenas grandmother is concerned her identity has been stolen. Help Marlena reconcile her...

Answered: 1 week ago

Question

★★★★★
Your company recently hired a new administrative assistant, Maryam Arjmand. On her first day, you stopped by her desk to meet her. During your conversation, you told her to let you know if there was...

Answered: 1 week ago

Previous Question Next Question