The required return is 13% and the market risk premium is 9%. The risk-free rate of interest on Howard Corporation stock is cannot be determined O-4% 4% 22%
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- Assume that the risk-free rate (i.e., Rf) is 2.8%. If, for a particular company bond issue, the default risk premium (i.e., DP) is 3.1%, the maturity risk premium ( i.e., MP) is 0.9%, and the market risk premium ( i.e., MRP) for that company's stock is 12.9% what is the required rate of return for the company's fixed income securities ? Record your answer as a percent , rounded to one decimal place , but do not include a percent sign in your answer . For example , enter 0.1578658 = 15.78625% as 15.8 .Using the equity asset valuation model (CAPM) equation, determine the required return for the shares of the following companies, if the market return is 7.50% (Rm = 7.50%) and the risk-free asset return is 1.25% (RF = 1.25%). You must show all counts. Stock Beta SKT 0.65 COST 0.90 SU 1.42 AMZN 1.57 V 0.94CAPM. The common stock of Anthony Steel has a beta of 0.80. The risk-free rate is 5 percent and the market risk premium (rM - rRF) is 6 percent. What is the company’s cost of common stock, rs? Please show your work
- Hoolahan Corporation's common stock has a beta of 1.12. Assume the risk-free rate is 4.7 percent and the expected return on the market is 12.2 percent. What is the company's cost of equity capital? Cost of equity _________%: Bradford manufacturing company has abta of 1.45 while Farley industries has abeta of 0.85 the holds the entire stock market is 12.0 % the risk –free rate of interest is 5% .By how much does Bradfords required return exceed Farley s required return ?The following information is related to X corporation: X's Beta was 1.3, market index 1 January 2020 was 100, market index 31 December 2020 was 110 and interest on treasury bills was 0.03 (risk free). Stock returns using the capital assets pricing model Question 20Answer a. 0.132 b. 0.143 c. 0.112 d. 0.121
- Hoolahan Corporation's common stock has a beta of 1.29. Assume the risk-free rate is 5.4 percent and the expected return on the market is 12.9 percent. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %The common stock of Anthony Steel has a beta of 0.80. The risk-free rate is 5 percent and the market risk premium (rM - rRF) is 6 percent. What is the company’s cost of common stock, rs?The Rhaegel Corporation's common stock has a beta of 1.2.f the risk-free rate is 5 percent and the expected return on the market is 14 percent, what is the company's cost of equity capital? Multiple Choice 15.8% 16.59% 15.01% 16.43% 21.8%
- The required rate of return on the Daisy Corporationʹs common stock is 11%, the current real rate of return in the market is 1%, and the marketʹs risk-free rate of return is 4%. In this case, the risk premium associated with Daisyʹs stock is * 5%. 6%. 7%. 8%.a company has a beta value of 1.3, the risk-free rate of return is 8% and the historical riskpremium for shares over the risk-free rate of return has been 5%. Calculate the return expectedon shares in X assuming the CAPM appliesThe common stock of Anthony Steel has a beta of 1.5. The risk-free rate is 6 percent and the market risk premium (rm - rf) is 6 percent. What is the company's cost of common stock, rs? Express your answer in percentage (without the % sign) and round it to two decimal places
