subject
Business, 19.02.2021 01:10 chloe9869

R Corporation has a beta of 2.0, while LR Corporation's beta is 0.5. The risk-free rate is 10percent, and the required rate of return on an average stock is 15 percent. Now the expectedrate of inflation built into rRF falls by 3 percentage points, the real risk-free rate remainsconstant, the required return on the market falls to 11 percent, and the betas remainconstant. When all of these changes are made, what will be the difference in the requiredreturns on HR's and LR's stocks

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 11:30
Mark knopf is an auditor who has been asked to provide an audit and financial statement certification for a company that is going public on the new york stock exchange. knopf wants to know his personal liability if the company provides him with inaccurate or false information. which of the following sources of law will him answer that question? a. the city ordinances where the company headquarters is located. b. the state constitution of the state where the company is incorporated. c. code of federal regulations. d. all of the above
Answers: 1
question
Business, 22.06.2019 13:30
The fiscal 2016 financial statements of nike inc. shows average net operating assets (noa) of $8,450 million, average net nonoperating obligations (nno) of $(4,033) million, average total liabilities of $9,014 million, and average equity of $12,483 million. the company's 2016 financial leverage (flev) is: select one: a. (0.477) b. (0.559 c. (0.323) d. (0.447) e. there is not enough information to determine the ratio.
Answers: 2
question
Business, 22.06.2019 22:10
jackie's snacks sells fudge, caramels, and popcorn. it sold 12,000 units last year. popcorn outsold fudge by a margin of 2 to 1. sales of caramels were the same as sales of popcorn. fixed costs for jackie's snacks are $14,000. additional information follows: product unit sales prices unit variable cost fudge $5.00 $4.00 caramels $8.00 $5.00 popcorn $6.00 $4.50 the breakeven sales volume in units for jackie's snacks is
Answers: 1
question
Business, 23.06.2019 01:00
Need with an adjusting journal entrycmc records depreciation and amortization expense annually. they do not use an accumulated amortization account. (i.e. amortization expense is recorded with a debit to amort. exp and a credit to the patent.) annual depreciation rates are 7% for buildings/equipment/furniture, no salvage. (round to the nearest whole dollar.) annual amortization rates are 10% of original cost, straight-line method, no salvage. cmc owns two patents: patent #fj101 and patent #cq510. patent #cq510 was acquired on october 1, 2016. patent #fj101 was acquired on april 1, 2018 for $119,000. the last time depreciation & amortization were recorded was december 31, 2017.before adjustment: land: 348791equpment and furniture: 332989building: 876418patents 217000
Answers: 3
You know the right answer?
R Corporation has a beta of 2.0, while LR Corporation's beta is 0.5. The risk-free rate is 10percent...
Questions
Questions on the website: 13722360