The company’s stock has a beta-coefficient of 1.5, and its market rate is 15%. With a risk-free rate of return is 8%. If the market rate increased by 1%, what is the expected rate of return?
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The company’s stock has a beta-coefficient of 1.5, and its market rate is 15%. With a risk-free
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- ZR Corporation’s stock has a beta coefficient equal to 1.8 and a required rate of return equal to 16 percent. If the expected return on the market is 10 percent, what is the risk-free rate of return, rRF?Suppose the current risk -free rate of return is 5 percent and the expected market risk premium is 7 percent. Using this information, estimate the cost of retained earnings for a company with a beta coefficient equal to 2.0?A company has a beta of .59. If the market return is expected to be 12.9 percent and the risk-free rate is 5.45 percent, what is the company's required return?
- A new company has a beta of 0.8. Their risk free rate is 4% and the market risk premium is 9%. What is their expected rate of return on this stock?The risk free rate currently have a return of 2.5% and the market risk premium is 4.22%. If a firm has a beta of 1.42, what is its cost of equity?The current risk-free rate of return, rRF, is 2 percent and the market risk premium, RPM, is 8 percent. If the beta coefficient associated with a firm's stock is 1.4, what should be the stock's required rate of return? Round your answer to one decimal place. _______ ´%
- The current beta for The Garner Company is 1.6. The risk-free rate of return is 3%, whereas the market risk premium is 7%. How much would the cost of equity rise if the company extends its operations to the point where its beta reaches 1.9?If the expected return from the market is 18%, the risk-free rate is 11%, and the beta of Loschert Corp. is 1.2, what is the required rate of return on Loschert's stock?Vani Corporation's beta coefficient is equal to 0.7 and the required rate of return on the stock equals 12 percent. If the expected return on the market is 12.5 percent, what is the risk-free rate of return?
- The company has a beta of 0.85. If the risk- free rate is 3.4% and the market premium is 8.5%, what is the company's cost of equity?Suppose the current risk-free rate of return is 3.5%, and the expected market return is 9%. Fashion Faux-Pas common stock has a beta coefficient equal to 1.4. Using the CAPM approach, compute the firm's cost of retained earnings.Company Q has earnings of $3.00 per share, a market price of $25, and a beta of 1.25. The risk-free rate is 3% and the risk premium for the market as a whole is 5%. What is the current rate of return for investing in company Q? What is the current "reward-to-risk ratio" for Company Q?