A stock has a beta of 0.85, the expected return on the market is 12 percent,...
|
A stock has a beta of 0.85, the expected return on the market is 12 percent, and the risk-free rate is 6 percent. What must the expected return on this stock be? Multiple choice
Alberto Trucking is expected to pay an annual dividend of $2.30 per share next year. The stock is currently selling for $32.50 a share. What is the expected total return on this stock if that return is equally divided between a dividend yield and a capital gains yield? Multiple Choice A. 3.54 percent B. 10.62 percent C. 7.08 percent D. 14.15 percent |
|
Marvin’s Interiors issued 8-year bonds 2 years ago. The bonds have a face value of $1,800, a 7.0 percent, semiannual coupon, and a current market price of $1,389. What is the pre-tax cost of debt? Multiple Choice:
|
Homework Answers
Expected return on stock = Risk free rate + beta*(Market return – risk free rate)
= 6% + 0.85*(12%-6%)
= 11.1%
Dividend yield = Dividend/Current Price
= 2.30/32.50
= 7.0769%
Hence, expected total return = 7.0769%*2 = 14.15%
Add Answer to:
A stock has a beta of 0.85, the expected return on the market is
12 percent,...
Marvin’s Interiors issued 8-year bonds 2 years ago. The bonds have a face value of $1,800,...
Marvin’s Interiors issued 8-year bonds 2 years ago. The bonds have a face value of $1,800, a 7.0 percent, semiannual coupon, and a current market price of $1,389. What is the pre-tax cost of debt? Multiple Choice: 12.53 percent 13.28 percent 14.23 percent 13.79 percent The Up and Coming Corporation's common stock has a beta of 1.4. If the risk-free rate is 3.5 percent and the expected return on the market is 13 percent, what is the company's cost of...
16,17,18 stock has a beta of 1.5, the expected return on the market is 11 percent,...
16,17,18
stock has a beta of 1.5, the expected return on the market is 11 percent, and the risk- Free rate is 3.85 percent. What must the expected return on this stock be? Multiple Choice 15.16% O 20.35% O 13.85% O 15.3% O The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.70 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 90 percent of its face...
A stock has a beta of 1.15, the expected return on the market is 16 percent,...
A stock has a beta of 1.15, the expected return on the market is 16 percent, and the risk- free rate is 7.2 percent. What must the expected return on this stock be? Multiple Choice Ο 25.6% Ο 18.01% Ο 16.45% Ο 17.32% Ο 1819%
A stock has a beta of 1.04, the expected return on the market is 11.75, and...
A stock has a beta of 1.04, the expected return on the market is 11.75, and the risk-free rate is 3.75. What must the expected return on this stock be? Multiple Choice 9.89 percent 38.32 percent 13.56 percent 19.16 percent 12.07 percent
A stock has a beta of 1.22the expected return on the market is 12 percent, and...
A stock has a beta of 1.22the expected return on the market is 12 percent, and the risk- free rate is 4.65 percent. What must the expected return on this stock be? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
A stock has a beta of 92 and an expected return of 8.57 percent. If the...
A stock has a beta of 92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk ratio? Multiple Choice Ο Ο Ο Ο Ο
The expected return on the market is 10.02 percent, the risk-free rate is 3.98 percent, and...
The expected return on the market is 10.02 percent, the risk-free rate is 3.98 percent, and the tax rate is 35 percent. Fairfax Paint has 1,400,000 common shares outstanding that are priced at 35 dollars per share and have an expected return of 16.39 percent and an expected real return of 14.23 percent. Last year, Fairfax Paint common stock had a return of 17.66 percent. The company also has 800,000 shares of preferred stock outstanding that are priced at 15...
Bernard Companies stock has an expected return of 10.75 percent. The stock is expected to return...
Bernard Companies stock has an expected return of 10.75 percent. The stock is expected to return 13.5 percent in a normal economy and 19.6 percent in a boom. The probabilities of a recession, normal economy, and a boom are 5 percent, 80 percent, and 15 percent, respectively. What is the expected return if the economy is in a recession? Multiple Choice −42.77 percent −63.76 percent −59.80 percent −36.72 percent −68.20 percent Crabby Shores stock is expected to return 15.7 percent...
Shares of common stock of the Samson Co. offer an expected total return of 15.6 percent....
Shares of common stock of the Samson Co. offer an expected total return of 15.6 percent. The dividend is increasing at a constant 4.7 percent per year. The dividend yield must be: Multiple Choice 3.32 percent. 1090 percent 4.70 percent C ) 20.30 percent 3.32 percent 10.90 percent 4.70 percent 20.30 percent 15 60 percent. The next dividend payment by Hot Wings, Inc., will be $3.25 per share. The dividends are anticipated to maintain a 4 percent growth rate forever....
PLZ help with the correct ans, The expected return on the market is 15.44 percent, the...
PLZ help with the correct ans,
The expected return on the market is 15.44 percent, the risk-free rate is 5.5 percent, and the tax rate is 40 percent. Fairfax Paint has 800,000 common shares outstanding that are priced at 25 dollars per share and have an expected retum of 16.01 percent and an expected real return of 13.95 percent. Last year, Fairfax Paint common stock had a return of 18.8 percent. The company also has 400,000 shares of preferred stock...
16,17,18
stock has a beta of 1.5, the expected return on the market is 11 percent, and the risk- Free rate is 3.85 percent. What must the expected return on this stock be? Multiple Choice 15.16% O 20.35% O 13.85% O 15.3% O The Bet-r-Bilt Company has a 5-year bond outstanding with a 3.70 percent coupon. Interest payments are paid semi-annually. The face amount of the bond is $1,000. This bond is currently selling for 90 percent of its face...
A stock has a beta of 1.15, the expected return on the market is 16 percent, and the risk- free rate is 7.2 percent. What must the expected return on this stock be? Multiple Choice Ο 25.6% Ο 18.01% Ο 16.45% Ο 17.32% Ο 1819%
A stock has a beta of 1.22the expected return on the market is 12 percent, and the risk- free rate is 4.65 percent. What must the expected return on this stock be? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
A stock has a beta of 92 and an expected return of 8.57 percent. If the risk-free rate is 2.8 percent, what is the stock's reward-to-risk ratio? Multiple Choice Ο Ο Ο Ο Ο
Shares of common stock of the Samson Co. offer an expected total return of 15.6 percent. The dividend is increasing at a constant 4.7 percent per year. The dividend yield must be: Multiple Choice 3.32 percent. 1090 percent 4.70 percent C ) 20.30 percent 3.32 percent 10.90 percent 4.70 percent 20.30 percent 15 60 percent. The next dividend payment by Hot Wings, Inc., will be $3.25 per share. The dividends are anticipated to maintain a 4 percent growth rate forever....
PLZ help with the correct ans,
The expected return on the market is 15.44 percent, the risk-free rate is 5.5 percent, and the tax rate is 40 percent. Fairfax Paint has 800,000 common shares outstanding that are priced at 25 dollars per share and have an expected retum of 16.01 percent and an expected real return of 13.95 percent. Last year, Fairfax Paint common stock had a return of 18.8 percent. The company also has 400,000 shares of preferred stock...
Most questions answered within 3 hours.
-
A diamond's index of refraction for red light, 656 nm, is 2.410,
while that for blue...
asked 8 minutes ago -
Compare HPLC, SPE, and GC. Identify the differences, the
advantages, and the weaknesses of each method.
asked 9 minutes ago -
Characteristic x-rays emitted by potassium have a wavelength of
0.374 nm. What is the energy of...
asked 12 minutes ago -
there is a function to create two random numbers between 1 and
25 and a function...
asked 30 minutes ago -
At a certain temperature, the ?pKp for the decomposition of
H2SH2S is 0.832.0.832.
H2S(g)↽−−⇀H2(g)+S(g)H2S(g)↽−−⇀H2(g)+S(g)
Initially, only...
asked 24 minutes ago -
Part 1.C&A Fast Food has four activities in serving a
customer: greet customer, take order, process...
asked 30 minutes ago -
Which attribute allows you to specify a custom "thumbnail" for
multimedia elements?
asked 1 hour ago -
How much 0.1200 M sodium hydroxide solution is need to titrate
14 mL of a 0.100...
asked 44 minutes ago -
An impulse is a change in momentum usually over
a short time. For which of the...
asked 49 minutes ago -
1a)When a 5000-kg roller coaster train full of riders approaches
the loading dock at a speed...
asked 1 hour ago -
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim...
asked 1 hour ago -
If the elasticity of supply of a good is ∞, then its
A. supply curve is...
asked 50 minutes ago