Required Rate of return : key information

Related BrainMass Solutions

• Gorden growth model & CAPM (Intel corp)

  K=cost of capital .i.e, required rate of return of the equity investor Required rate of return means the rate of return needed to induce investors or companies to invest in something. G=growth rate in dividends in perpetuity.

• CAPM & Gorden growth model (Intel)

  K=cost of capital .i.e, required rate of return of the equity investor Required rate of return means the rate of return needed to induce investors or companies to invest in something. G=growth rate in dividends in perpetuity.

• Innovation's financial statements for 2007

  19.0% Sales growth rate 8.8% Required return for operation 12.3% a.

• NY Key Weighted Marginal Cost

  The before-tax required rate of return on debt is 9%, and the required rate of return on equity is 13.75%. If the company is in the 40% tax bracket, what is New York Key's weighted marginal cost of capital?

• Cost equity estimates

  using CAPM for calculating the required rate of return, it is important to understand the concept of beta.

• Strategic Corporate Finance

  Click on the "key statistics" link on the left hand side of the screen to find the beta and other information.

• Equity Valuation Models - CAPM & CGM

  information you recorded, use the CAPM to calculate XYZ's required rate of return (ks).

• Cost of capital

  Key competitors include Raytheon, Boeing, Lockheed Martin, and the Northrop Grumman Corporation. 1. Using the dividend growth model and assuming a dividend growth rate of 5%, what is the rate of return for one of three key competitors?

• Operating income and residual operating income

  Value of Operations= Free cash flow *(1+growth rate)/ (Required return-growth rate) =8703.73 *(1+8.8%)/(12.3%-8.8%) =$270561.7 mn Note: I have taken Operating Income as free cash flow from operations Value of company's equity= Value of operations