Suppose that Tesla has a market Beta of 2.01 . They have a debt to equity valve of34%and a tax rate of25%. The risk free rate is3%and the inarket risk premium is4.1%Suppose that Tesla acquives Fivian and their new debt to equity rato is75%. What is Tesla's new market Beta? A. 1.75 B. 1.84 C. 201 D. 250

Q: a. Given the following holding-period returns, compute the average returns and the standard…

A: a. Formula used:

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A: Since you have posted multiple questions, we shall be solving single question for you. In case you…

Q: Q2: By using CAPM calculate the required return on equity if Risk free rate is 18%, Expected Market…

A: Given Information: Risk-free Rate=18% Beta=1.5 Expected Market Return=20%

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A: Computations as follows:

Q: equired r

A: Given information :

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Q: 2. Assume that you are on the financial staff of Ehrhorn Enterprises, and you have collected the…

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Q: required by the market for a portfolio with a beta of 1 is 13.0%. According to the capital asset…

A: Risk free rate=6%Rate of return with beta 1=13.0%Dividend next=$9Price=$105

Q: am. 114.

A: The expected return of the investment can be calculated using the formula for leveraged returns,…

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A: In its most basic form, the average annual return (AAR) is a metric that quantifies how much money a…

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Q: 1. Assume the risk free interest rate is 3%, the market rate of return is 7% and beta for company X…

A: AS you have posted multiple questions, we will solve first question for you. If you want remaining…

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A: Beta = 2.42 Risk free rate = 8.2% Market return = 16%

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A: Holding Period Return: Holding period is used to determine how much gains or losses were incurred by…

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A: The below expression can be used to calculate the required return (without considering inflation):

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A: Risk free rate = 3.4% Market return = 9.9%

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Q: What is the net present value of this project?

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A: 1) Non diversifiable risk for the company = Market rate of return - risk free rate

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A: CAPM cost of equity = risk free rate+ beta *market risk premium = 4.4% + 1.3*5.9% = 12.07% Bond…

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A: Risk Premium = 5.6% Risk Free Rate = 1.3% Growth rate = 2%

Q: Nero Violins has the following capital structure: Security Debt Preferred Stock Common Stock Beta 0…

A:

Q: Suppose the firm in exercise 14.2 unexpectedly announces that it will issue additional debt, with…

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Q: How can managers use the statement of cash flows to make important business decision?

A: Cash flow from operating activities reflects how well the company is operating.

Q: 10f

A: Calculate the expected return as follows: Expected return = Risk free rate + (beta * Market risk…

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A: Reward to risk ratio = (expected return - risk free rate) / beta.

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A: Here, Beta is 1.6 Risk Free Return is 2.80% Market Risk Premium is 5.71%

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