The stock market data given by the following table. Telmex Mexico World Correlation Coefficients Telmex 1.00 Domestic beta World beta Mexico 1.50 1.00 World 1.00 1.20 1.00 SD (%) 18 15 10 R (%) ? 14 12 The above table provides the correlations among Telmex, a telephone/communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations (SD) of returns and the expected returns (R). The risk-free rate is 9%. Compute the domestic country beta of Telmex as well as its world beta. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

The stock market data given by the following table. Telmex Mexico World Correlation Coefficients Telmex 1.00 Domestic beta World beta Mexico 1.50 1.00 World 1.00 1.20 1.00 SD (%) 18 15 10 R (%) ? 14 12 The above table provides the correlations among Telmex, a telephone/communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations (SD) of returns and the expected returns (R). The risk-free rate is 9%. Compute the domestic country beta of Telmex as well as its world beta. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 78E: Ratio Analysis Consider the following information. Required: Calculate the stockholder payout...

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The stock market data is given in the following table. The above table provides the correlations among Telmex, a telephone or communication company located in Mexico, the Mexico stock market index, and the world market index, together with the standard deviations (SD) of returns and the expected returns ( /bar (R) ). The risk-free rate is 8%. Required: Suppose now that Telmex has made its shares tradable internationally via cross-listing on NYSE. Again using the CAPM paradigm, estimate Telmex's equity cost of capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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