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Nastasia [14]
2 years ago
9

The stock in Pal-Maine Foods has a beta of .85. The expected return on the market is 11.50 percent and the risk-free rate is 2.8

5 percent. What is the required return on the company's stock?
Business
1 answer:
algol [13]2 years ago
6 0

Answer:

the required rate of return is 10.20%

Explanation:

The computation of the required rate of return is shown below;

We know that

= risk free rate of return + beta × (market rate of return - risk free rate of return)

= 2.85% + 0.85 × (11.50% - 2.85%)

= 2.85% + 7.3525%

= 10.20%

hence, the required rate of return is 10.20%

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Answer:

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a) Data and Calculations:

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8 0
2 years ago
The annual dividend rates for a random sample of 16 companies in three different industries, utilities, banking, and insurance,
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A dividend rate simply means a financial ratio that is important as it shows how much a company pays out in dividends every year relative to the stock price of the company.

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Options: decreasing an importance weight. increasing a performance belief. decreasing the performance belief for a competitive retailer. adding new benefits. focusing on all benefits.

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a. presentation and demonstration

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