Business
Business, 23.07.2020 15:01, mrnotsosmart744

For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta coefficient of 1.5?

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 01:30, whocaresfasdlaf9341
If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine
Answers: 1
image
Business, 22.06.2019 04:30, fixianstewart
4. the condition requires that only one of the selected criteria be true for a record to be displayed.
Answers: 1
image
Business, 22.06.2019 19:30, smokey19
The usa today reports that the average expenditure on valentine's day is $100.89. do male and female consumers differ in the amounts they spend? the average expenditure in a sample survey of 47 male consumers was $135.67, and the average expenditure in a sample survey of 38 female consumers was $68.64. based on past surveys, the standard deviation for male consumers is assumed to be $34, and the standard deviation for female consumers is assumed to be $17.
Answers: 1
image
Business, 23.06.2019 05:30, sabaheshmat200
What is a potential negative effect of an expansionary policy? decreased borrowing increased interest rates increased inflation decreased available credit
Answers: 1
Do you know the correct answer?
For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return...

Questions in other subjects: