King Farm Manufacturing Company’s common stock has a beta of 2.00. If the risk-free rate is...
King Farm Manufacturing Company’s common stock has a beta of 2.00. If the risk-free rate is 3.71 percent, and the market return is 5.21 percent, calculate the required return on King Farm Manufacturing’s common stock.
Round the answers to two decimal places in percentage form.
Homework Answers
Required return=risk free rate+beta*(market rate-risk free rate)
=3.71+2*(5.21-3.71)
which is equal to
=6.71%
Add Answer to:
King Farm Manufacturing Company’s common stock has a beta of
2.00. If the risk-free rate is...
Thanks so much for helping me out folks; Please show me the work, as I need...
Thanks so much for helping me
out folks; Please show me the work, as I need to get this down!
Thanks again :)
King Farm Manufacturing Company's common stock has a beta of 0.61. If the risk- free rate is 3.44 percent, and the market return is 5.95 percent, calculate the required return on King Farm Manufacturing's common stock. Round the answers to two decimal places in percentage form.
the Lenzie Corporation’s common stock has a beta of 1.80. If the risk-free rate is 4.9%...
the Lenzie Corporation’s common stock has a beta of 1.80. If the risk-free rate is 4.9% and the expected return on the market is 11%, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital ____ %
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The Lenzie Corporation’s common stock has a beta of 1.30. If the risk-free rate is 4.4% and the expected return on the market is 10%, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital ___ %
The Lenzie Corporation’s common stock has a beta of 1.90. If the risk-free rate is 5.9%...
The Lenzie Corporation’s common stock has a beta of 1.90. If the risk-free rate is 5.9% and the expected return on the market is 13%, what is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital
The Rhaegel Corporation’s common stock has a beta of 1.07. If the risk-free rate is 3.5 percent and the expected return...
The Rhaegel Corporation’s common stock has a beta of 1.07. If the risk-free rate is 3.5 percent and the expected return on the market is 10 percent, what is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Sheridan Industries common stock has a beta of 1.2. If the market risk-free rate is 5.2...
Sheridan Industries common stock has a beta of 1.2. If the
market risk-free rate is 5.2 percent and the expected return on the
market is 8.2 percent, what is Sheridan’s cost of common stock?
I solved this problem incorrectly by doing
Kes=Rrf+(Betaesx market risk
premium)
Kes=0.052+(1.2x0.082)
Kes=0.052+0.098400
Kes=0.1504=15.0%
I'm not sure what I am doing wrong. Please show full
calculation.
X Your answer is incorrect. Sheridan Industries common stock has a beta of 1.2. If the market risk-free rate is...
Elba Eateries' stock has a beta of 0.70. Assume that the risk-free rate, rRF, is 5.5%...
Elba Eateries' stock has a beta of 0.70. Assume that the risk-free rate, rRF, is 5.5% and the market risk premium, (rM – rRF), equals 4%. Compute the required rate of return for Elba Eateries. Respond in percentage form without the percent sign and round to the second decimal place
The Dybvig Corporation’s common stock has a beta of 1.2. If the risk-free rate is 5.2...
The Dybvig Corporation’s common stock has a beta of 1.2. If the risk-free rate is 5.2 percent and the expected return on the market is 10 percent, what is Dybvig’s cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity capital %
The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 5.1...
The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 5.1 percent and the expected return on the market is 13 percent, what is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Cost of equity capital
Thanks so much for helping me
out folks; Please show me the work, as I need to get this down!
Thanks again :)
King Farm Manufacturing Company's common stock has a beta of 0.61. If the risk- free rate is 3.44 percent, and the market return is 5.95 percent, calculate the required return on King Farm Manufacturing's common stock. Round the answers to two decimal places in percentage form.
Sheridan Industries common stock has a beta of 1.2. If the
market risk-free rate is 5.2 percent and the expected return on the
market is 8.2 percent, what is Sheridan’s cost of common stock?
I solved this problem incorrectly by doing
Kes=Rrf+(Betaesx market risk
premium)
Kes=0.052+(1.2x0.082)
Kes=0.052+0.098400
Kes=0.1504=15.0%
I'm not sure what I am doing wrong. Please show full
calculation.
X Your answer is incorrect. Sheridan Industries common stock has a beta of 1.2. If the market risk-free rate is...
The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 5.1 percent and the expected return on the market is 13 percent, what is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Cost of equity capital
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