Required Rate of Return for CAPM.
Not what you're looking for?
Kingsmen, Inc. is an all equity financed firm. The beta is .75, the market risk premium is 8% and the risk free rate is 4%. The cost of debt at companies of similar risk is 7%. What is the required return on the stock of Kingsmen?
Purchase this Solution
Solution Summary
The expert examines the required rate of return for equity financed firm.
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.