Business, 21.04.2020 19:56 vixen0528ow6mza

You are thinking of buying a stock priced at $ 96 per share. Assume that the risk-free rate is about 4.1 % and the market risk premium is 6.6 %. If you think the stock will rise to $ 117 per share by the end of the year, at which time it will pay a $ 1.13 dividend, what beta would it need to have for this expectation to be consistent with the CAPM?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 13:40

A.j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a.j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a.j. could have probably handled. a.j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a.j. was recognizing the culture at idle time gaming.

Answers: 3

Answer

Business, 22.06.2019 19:30

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%

Answers: 3

Answer

Business, 22.06.2019 21:00

An important source of public scrutiny is "watchdogs." these are: the efforts of a firm's competitors, including how often the competitors attack the firm's strategies. taxpayer-supported government agencies that limit a firm's ability to compete in foreign markets. companies designated by the government to only produce products that support the government defense program. socially conscious groups that make it their mission to measure the social responsibility levels of businesses, and provide consumers with their opinions about the level of corporate responsibility of various companies.

Answers: 2

Answer

Business, 23.06.2019 11:00

The – effect means tommy's – will shift because he has less purchasing power. as a result, he may choose the regular-size steak instead of the larger "hunter's portion" he prefers. the – effect means tommy may spend some of the money he saved by ordering the smaller steak to order a bigger salad.

Answers: 3

Answer

You know the right answer?

You are thinking of buying a stock priced at $ 96 per share. Assume that the risk-free rate is about...

Questions