"Semitool Corp. has an expected excess return of 20% for next year. However, for every unexpected 1% change in the market, Semitool's return responds by a factor of 0.9. Suppose it turns out that the economy and the stock market do better than expected by 10% and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 4%. Based on this information, what was Semitool's actual excess return? Note: Express your answers in strictly numerical terms. For example, if the answer is 5 %, write 0.05"

"Semitool Corp. has an expected excess return of 20% for next year. However, for every unexpected 1% change in the market, Semitool's return responds by a factor of 0.9. Suppose it turns out that the economy and the stock market do better than expected by 10% and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 4%. Based on this information, what was Semitool's actual excess return? Note: Express your answers in strictly numerical terms. For example, if the answer is 5 %, write 0.05"

Name: vvk.1 "Semitool Corp. has an expected excess return of 20% for next ye
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Description: vvk.1 "Semitool Corp. has an expected excess return of 20% for next year. However, for every unexpected 1%change in the market, Semitool's return responds by a factor of 0.9. Suppose it turns out that theeconomy and the stock market do better than ex

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 21P

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