subject
Business, 18.09.2019 21:00 rvkanneh1713

Hr corporation has a beta of 2.0, while lr corporation's beta is 0.5. the risk-free rate is 10 percent, and the required rate of return on an average stock is 15 percent. now the risk-free rate falls by 3 percentage points, the required return on the market falls to 11 percent, and the betas remain constant. when all of these changes are made, what will be the difference in the required returns on hr's and lr's stocks?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 06:40
10. which of the following is true regarding preretirement inflation? a. defined-benefit plans provide more inflation protection than defined-contribution plans. b. because of preretirement inflation, possible investment-related growth is increased for defined-contribution plans. c. all types of benefits are designed to cope with preretirement inflation. d. preretirement inflation is generally reflected in the increase in an employee's compensation level over a working career.
Answers: 3
question
Business, 22.06.2019 12:30
In the 1970s, kmart used blue light specials to encourage customers to flock to a particular department having a temporary sale. a spinning blue light activated for approximately 30 seconds, and then an in-store announcement informed shoppers of the special savings in the specific department. over time, loyal kmart shoppers learned to flock to the department with the spinning blue light before any announcement of special savings occurred. if kmart was employing classical conditioning techniques, what role did the spinning blue light play?
Answers: 3
question
Business, 22.06.2019 17:40
Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc
Answers: 2
question
Business, 22.06.2019 18:50
Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations on less than 24 hours' notice. the company has grown by over 150 percent in the past year. dominic credits some of the company's success to studying the strategies of prominent social entrepreneurs, such as wikipedia's jimmy wales. what can dominic do to exemplify the social entrepreneurship model?
Answers: 2
You know the right answer?
Hr corporation has a beta of 2.0, while lr corporation's beta is 0.5. the risk-free rate is 10 perce...
Questions
question
Mathematics, 29.01.2020 17:58
question
Mathematics, 29.01.2020 17:59
question
Health, 29.01.2020 17:59
Questions on the website: 13722361