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Flura [38]
3 years ago
14

Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, w

hat is the required rate of return on B's stock
Business
1 answer:
almond37 [142]3 years ago
3 0

Answer:

9.21%

Explanation:

Required return of Stock A = Risk free rate + (Beta of Stock A × Market risk premium )

12.00% = 4.75% + (1.30 × Market risk premium)

=> Market risk premium = 5.58%

Required return of Stock B:

= Risk free rate + (Beta of Stock B × Market risk premium )

= 4.75% + (0.80 × 5.58%)

= 9.21%

Therefore, the required rate of return on B's stock is 9.21%.

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Which of these companies exemplifies the globalization of markets? a. The clothes of Sea Shell Fashions, a U.S.-based company, a
kondaur [170]

Answer:

c. Fluffy Pillows, a U.S.-based pillow company, sells the same pillows worldwide.

Explanation:

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I wish you all the best.

7 0
3 years ago
Read 2 more answers
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6 0
3 years ago
At December 31, 2020 Bramble Corp. had 298000 shares of common stock and 9800 shares of 6%, $100 par value cumulative preferred
Vika [28.1K]

Answer:

the earning per common share is $3.83 per share

Explanation:

The computation of the earning per common share is shown below

= Net income ÷ weighted number of outstanding shares

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hence, the earning per common share is $3.83 per share

5 0
3 years ago
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