The market risk premium is 5.41% and the yield on a Treasury bond is 1.02%. What is the fair return on this stock?Etsy, Inc. (ETSY)NasdaqGS - NasdaqGS Real Time Price. Currency in USD* Add to watchlist140.06 +5.56 (+4.13%)At close: November 20 4:00PM ESTSummaryCompany OutlookChartConversationsStati:Previous Close134.50Market Cap17.66BBeta (5YMonthly)Open136.521.59Bid139.90 x 1100PE Ratio (TTM)75.22Ask140.05 x 900EPS (TTM)1.86Day's Range136.26 - 143.96Earnings DateOct 28, 2020Forward52 Week Range29.95 - 154.88N/A (N/A)Dividend & YieldVolume4,258,608Ex-Dividend DateN/AAvg. Volume4,284,7901y Target Est160.12

Solution:- Capital Asset Pricing Model (CAPM) is the model which helps to compute the fair return on…

The market risk premium is 5.41% and the yield on a Treasury bond is 1.02%. What is the fair return on this stock? Etsy, Inc. (ETSY) NasdaqGS - NasdaqGS Real Time Price. Currency in USD * Add to watchlist 140.06 +5.56 (+4.13%) At close: November 20 4:00PM EST Chart Conversations Stati: Summary Company Outlook Previous Close 134.50 Market Cap 17.66B Beta (5Y Monthly) Open 136.52 1.59 Bid 139.90 x 1100 PERatio (TTM) 75.22 Ask 140.05 x 900 EPS (TTM) 1.86 Day's Range 136.26 - 143.96 Earnings Date Oct 28, 2020 Forward 52 Week Range 29.95 - 154.88 N/A (N/A) Dividend & Yield Volume 4,258,608 Ex-Dividend Date N/A Avg. Volume 4,284,790 1y Target Est 160.12

The market risk premium is 5.41% and the yield on a Treasury bond is 1.02%. What is the fair return on this stock? Etsy, Inc. (ETSY) NasdaqGS - NasdaqGS Real Time Price. Currency in USD * Add to watchlist 140.06 +5.56 (+4.13%) At close: November 20 4:00PM EST Chart Conversations Stati: Summary Company Outlook Previous Close 134.50 Market Cap 17.66B Beta (5Y Monthly) Open 136.52 1.59 Bid 139.90 x 1100 PERatio (TTM) 75.22 Ask 140.05 x 900 EPS (TTM) 1.86 Day's Range 136.26 - 143.96 Earnings Date Oct 28, 2020 Forward 52 Week Range 29.95 - 154.88 N/A (N/A) Dividend & Yield Volume 4,258,608 Ex-Dividend Date N/A Avg. Volume 4,284,790 1y Target Est 160.12

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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What is the risk premium for the stock in the table below? The risk free rate is 1.05% and the market risk premium is 5.41%. Apple Inc. (AAPL) NasdageS - Nasdaqes Reat Time Price. Curtency in USD 17 122.41 - 0.83 (-0.67%) At close: December 11 4:00PM EST Summary Company Outlook Chart Stat Conversations Previous Close 123.24 Market Cap 2.081T Open 122.43 Beta (SY Monthly) 1.30 Bid 122.28 x 900 PE Ratio (TIM) 37.32 Ask 122.29 x 800 EPS (TIM) 3.28 Day's Range 120.55 - 122.76 Earnings Date Jan 25, 2021 - 52 Week Range 53.15 - 137.98 Forward Dividend & Yield Feb 01, 2021 0.82 (0.67%) Volume 86,939,786 Ex-Dividend Date Nov 06, 2020 Avg. Volume 125,250,132 Ly Target Est 126.24
The market risk premium is 5.41% and the yield on a Treasury bond is 1.02%. What is the fair return on this stock? this is part of the questionAmazon.com, Inc. (AMZN) NasdaqGS - NasdaqGS Real Time Price. Currency in USD 3,099.40 - 17.62 (-0.57%) At close: November 20 4:00PM EST Summary Company Outlook Chart Conversations Sta Previous Close 3,117.02 Market Cap 1.555T Open 3,117.02 Beta (5Y Monthly) 1.30 Bid 3,102.80 x 800 PE Ratio (TTM) 90.62 Ask 3,104.75 x 900 EPS (TTM) 34.20 Day's Range 3,098.05 - 3,132.89 Earnings Date Jan 28, 2021 - Feb 01, 2021 52 Week Range 1,626.03 - 3,552.25 Forward Dividend & Yield N/A (N/A) Volume 3,380,138 Ex-Dividend Date N/A Avg. Volume 5,170,951 1y Target Est 3,812.78
The following return series comes from Global Financial Data. US T-bills CPI Year Large Stocks LT Gov Bonds (Rf asset) (inflation) 2017 21.83% 6.24% 0.80% 2.07% 2018 -5.28% -1.25% 1.81% 2.10% 2019 25.45% 3.35% 2.15% 1.10% 2020 18.16% 10.25% 4.50% 1.88% 2021 28.70% -1.54% 0.40% 7.00% 2022 -19.78% -8.55% 2.20% 6.50% Calculate the average real risk premium earned on large-company stocks using the approximate Fisher equation. (Enter percentages as decimals and round to 4 decimals)
Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000, and the current date is April 19, 2022 Company (Ticker) του (100) Estimated Coupon Maturity. Last Price Last Yield Volume (000) 6.85 April 19, 2036 92.741 77 a. Yield to maturity b. Current yield 73 a. What is the yield to maturity of the bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the current yield? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.
Cost of common stock equity-CAPM Netflix common stock has a beta, b, of 1.6. The risk-free rate is 4%, and the market return is 11%. a. Determine the risk premium on Netflix common stock. b. Determine the required return that Netflix common stock should provide. c. Determine Netflix's cost of common stock equity using the CAPM. a. The risk premium on Netflix common stock is%. (Round to one decimal place)
The Bloomberg screen below shows the Nasdaq Index price over the last year. Describe the technical indicator used from the chartist and what trade signal it may suggest. CCMP €T On 03 CCMP Index 11/04/2020 Study RSI 1D 3D 1M 6M YTD 1Y 5Y Max Daily Volume 1.000B IRSI (14) on Close (CCMP) 75.3572 Nov C 15811.58 +161.98 Nov 0 15658.52 H 15821.58 L 15616.44 Prev 15811.58 94) Suggested Charts 96) Actions 97) Edit 11/04/2021 Last Px Local CCY Mov Avgs Period 14 Overbought 70 Oversold 30 1 Table + Compare ▾ Add Data Track Annotate News Zoom Key Events 2020 Dec Jan Feb Mar Apr May Jun 06/03/21 Jul Aug Relative Strength Index ไปได้ Sep Edit Chart * Oct 15811.5801 15013.0596 14198.1699 Last Price THigh on 11/03/21 Average 15811.5801 15821.5801 12000 13839.5049 Z-VOU 1 Low on 11/04/20 11394.21 11075.4473 ISMAVG (50) on Close 15013.0596 SMAVG (100) on Close 14805.082 SMAVG (200) on Close 14198.1699 13000 10000 3B 2B 1.000B -0 100 75.3572 -50 -0
Based on the information given herei, what is the firm's current market cap? What is the firm's net income? The firm's current market cap is $ trillion, at the close of the trading day. (Round to three decimal places.) More info Apple Inc. (AAPL) NasdaqGS-NasdaqGS Real Time Price. Currency in USD 207.25 +0.14 (+0.07%) 206.99 -0.26 (-0.13%) At close: 4:00PM EDT After hours: 4:56PM EDT Summary Chart Conversations Statistics Previous Close Open Bid Ask Day's Range 52 Week Range Volume Avg. Volume 207.11 206.05 207.02 x 800 207.05 x 1000 204.52-207.81 149.16-209.50 Market Cap Beta PE Ratio (TTM) EPS (TTM) Earnings Date Forward Dividend & Yield Ex-Dividend Date Add to watchlist 20,036,697 23,442,660 1y Target Est Profile Financials Options Holders Historical Data 1.001T 1D 5D 1M 6M YTD 1Y 5Y Max 1.14 18.78 11.04 Oct 31, 2018- Nov 5, 2018 2.92 (1.40%) 2018-08-10 Buy 215.46 10 AM 12 PM Sell 2 PM - Analysis X
solve MCQs question with proper reason and explanation I'll give you many upvotes
Projections for a firm whose stock you wish to value: Years 1-6 EPS Payout Ratio Stock's beta is YTM on T-bond is Stock premium is 1.26 0.27 1. What is the stock's value? A Between 15.00 and 23.00 B Between 23.00 and 27.00 C Between 27.00 and 31.00 D Between 31.00 and 40.00 0.6 4.3% 5.0% Years 7-13 4.97 0.36 Discount the projected dividends at the required rate of return to estimate the stock's value. Only use years 1-24 in your computations. Years 14 - 24 6.91 0.42 2. Please go back to the original story. Suppose the stock becomes less risky from an investor's view. For instance, suppose its beta is now 0.80 If there are 90,000,000 shares outstanding, what is the impact on the market value of the firm? Hint: first find the new stock price, then compute how it changed, and multiply that change by the number of shares outstanding. A up between 0 and 160,000,000 B up between 160,000,000 and 500,000,000 C down between 0 and 160,000,000 D down between 160,000,000 and 500,000,000
Want the Correct answer from bellow options
Qd 42.
What was the closing price for McKesson on July 7, 2016?

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