Required rate of return=risk free rate+Beta*market risk premium
=3+(1.1*5)
which is equal to
=8.5%
16. Calculate the required rate of return for Avy Inc., assuming that the company has a...
4. Calculate the required rate of return for Slimax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, and (4) the firm has a beta of 1.00.
Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. Do not round your intermediate calculations.
Calculate the required rate of return for Climax Inc, assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) Its realized rate of return has averaged 15.0% over the last 5 years. Do not round your intermediate calculations. O .. 17.769 b.16.289 . 16.50 20.914
Calculate the required rate of return for Climax Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. Do not round your intermediate calculations. a. 16.28% b. 18.87% c. 17.76% d. 18.50% e. 20.91%
Inflation, recession, and high interest rates are economic events that are best characterized as being a systematic risk factors that can be diversified away. b. company-specific risk factors that can be diversified away. c. among the factors that are responsible for market risk. d. risks that are beyond the control of investors and thus should not be considered by security analysts or portfolio managers. c. irrelevant except to governmental authorities like the Federal Reserve. Calculate the required rate of return...
Please determine the required rate of return for DJMH Inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 0.96, and (5) its realized rate of return has averaged 15.0% over the last 5 years. Provide your answer as a percentage to ((((1 decimal place.)))
5,6,7,8
5. Stock valuation is impacted by 2. Dividends b. The growth rate of dividends c. The risk associated with the firm issuing the stock d. All of the above e. Answers a, b, and c plus for how much you can sell the stock in the future. Inflation, recession, and high interest rates are economic events that are best characterized as being a. systematic risk factors that can be diversified away. b. company-specific risk factors that can be diversified...
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 5.0% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 7.0%. Mudd has a beta of 1.8, and its realized rate of return has averaged 8.5% over the past 5 years. Round your answer to two decimal places.
Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.9% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 5.0%. Mudd has a beta of 2.1, and its realized rate of return has averaged 10.5% over the past 5 years. Round your answer to two decimal places.
Calculate the required rate of return for Food Inc. Assuming that (1) investors expect a 2.0% rate of inflation in the future, (2) the real risk-free rate is 3.5%, (3) the market portfolio return is 7.5%, (4) the firm has a beta of 2.00, and (5) its realized rate of return has averaged 12.0% over the last 5 years. (Hint: You will need to get the market premium first in the CAPM model).