required rate of return

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• Stock questions

  What is the required rate of return on a stock with a beta of 0.7? 8- 5 BETA AND REQUIRED RATE OF RETURN A stock has a required return of 11%, the risk- free rate is 7%, and the market risk premium is 4%. a. What is the stock's beta? b.

• Rate of return, growth rate, return on equity

  rate of return = $2.7016 Required rate of return = .087148 Required rate of return = 8.71 percent b.

• Required return

  What is the required rate of return on a stock with a beta of 0.7? 8-5 BETA AND REQUIRED RATE OF RETURN A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premium is 4%. a. What is the stock's beta? b.

• Stocks : Required Rate of Return and Expected Return

  235871 Determining Required Rate of Return and Expected Return: Example A stock has a beta of 1.5, the market risk premium is 9%, and the risk-free rate is 5%. a. What is the required rate of return on this stock? b.

• Required Rate of Return

  89512 Required Rate of Return for Financial Management Suppose the following: Risk Free Rate of Return = 9% Required Rate of Return on a Market Portfolio = 14% Beta = 1.3 Suppose the risk free rate of return (1) increases to 10 percent or

• Nominal required rate of return

  Hence there is a need of change in nominal required rate of return as the real rate of return will go down if there is increase in inflation with no increase in nominal required rate of return.

• Cost of Capital with Flotation Costs

  So, Required rate of return=(Next dividend/(Price of stock-flotation cost per share))+growth rate Required rate of return=($1.75/($35-$1.75))+.07 Required rate of return=($1.75/$33.25)+.07 Required rate of return=0.0526+.07 Required rate of return

• Calculating WACE

  )/(Required rate of return - .06) $52.50 = $2.65/(Required rate of return - .06) ($52.50*Required rate of return) - ($52.50*.06) = $2.65 ($52.50*Required rate of return) - $3.15 = $2.65 ($52.50*Required rate of return) = $5.80 Required rate of return

• required return

  If the risk free rate rises to 9%, what will the required rate of return on the company's stock? = 9%+1.3*(14%-8%) =16.8% III. If the beta of this company were 0.8, what would the its required rate of return?

• How to calculate - Rate of Return, CAPM

  112953 How to calculate - Rate of Return, CAPM 1. Required rate of return: Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13 percent, and the risk-free rate of return is 7 percent.