Answer:
Stock R more beta than Stock S = 4.2%
Explanation:
given data
Stock R beta = 1.8
Stock S beta = 0.75
expected rate of return = 9% = 0.09
risk-free rate = 5% = 0.05
solution
we get here Required Return
Required Return (Re) = risk-free rate + ( expected rate of return - risk-free rate ) beta ...........1
Required Return (Re) = 0.05 + ( 0.09 - 0.05 ) B
Required Return (Re) =
so here
Stock R = 0.05 + ( 0.09 - 0.05 ) 1.8
Stock R = 0.122 = 12.2 %
and
Stock S = 0.05 + ( 0.09 - 0.05 ) 0.75
Stock S = 0.08 = 8%
so here more risky stock is R and here less risky stock is S
Stock R is more beta than the Stock S.
Stock R more beta Stock S = 12.2 % - 8%
Stock R more beta Stock S = 4.2%
Answer:
i think it is the 3rd one I'm not sure but I need help on one of mine and it would be really good if you can help me I will appreciateit
Answer:
E) A sharp increase in its forecasted sales.
Explanation:
Haven developed a forecasting model to estimate its AFN for the upcoming year, F. Marston, Inc. would have an increase in the additional funds needed (AFN) due to the sharp increase in its forecasted sales.
An increase in sales translates to an increased cash flow and profits.
Answer:
NPV= $1,983,471.1
Explanation:
Giving the following information:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
NPV= -Io + ∑[Rt/(1+i)^t]
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
NPV= -10,000,000 - 5,000,000/1.10 + (20,000,000/1.10^2)
NPV= $1,983,471.1
Answer:
What research will help prepare you before you apply for a job?
Explanation: A
