a stock has a beta of 1.1, the expected return on the market is 10.4 percent, and the risk-free rate is 4.75 percent. what must the expected return on this stock be? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) expected return %

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Answer 1

This stock's anticipated return is 17,000%

What return must be anticipated for this stock?

For long-term stock market investments, the majority of investors would consider an average annual rate of return of 10% or above to be a decent ROI. Just remember that this is an average. There will be years with reduced returns, or even negative returns.

The following formula is used to calculate expected rate of return in accordance with the Capital Asset Pricing Model (CAPM):

Risk-free rate plus beta equals the expected rate of return (Market rate - Risk free rate)

Whereas market risk premium is another name for (market rate - risk free rate) in this context.

Thus, the projected rate of return is equal to 10% plus 1.00 (10% - 3%)

= 10% + 1.00 × 7%

= 10% + 7%

= 17.00%

hence, This stock's anticipated return is 17.00%.

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Related Questions

celine spends much of her time checking inventories, processing straight rebuys, and making sure that everything is going smoothly. celine is primarily a(n)

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Celine spends a lot of her time ensuring sure everything is running well, processing straight rebuys, and inspecting inventory. Celine's main job is taking orders.

The items and materials a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory (in American English) or stock (in British English). The main focus of inventory management is determining the location and shape of stocked commodities. It is necessary to go before the regular and scheduled course of manufacturing and stocking of materials at various places within a facility or at several sites of a supply network. By broadening the definition to include "all work within the process of production - all work that is or has occurred prior to the completion of production," the concept of inventory, stock, or work in process (or work in progress) has been extended from manufacturing systems to service businesses and projects. Inventory in the context of a manufacturing production system refers to all work that has been completed, including raw materials, products that have been partially finished, finished products that have not yet been sold, and items that have left the manufacturing system. Inventory in the context of services refers to all work completed prior to sale, including information that has not yet been fully processed.

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In which type of cheque payment only can be transferred in a bank account of the payee?

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Customer Payee Only cheque payments may be deposited into the payee's bank account.

A bank account is a record of a customer's financial transactions with a bank that is held by a bank or other financial institution. Each financial institution's own terms and conditions are established for each type of account it offers. These accounts are divided into simple to comprehend categories like bank accounts, credit card accounts, current accounts, loan accounts, and many other sorts of accounts. A customer could have several accounts. The money a consumer deposits with a financial institution to open an account is recorded in the account they select. Money can be withdrawn via loan loaders.

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Should maria's ethical responsibility to the company lead her to give a full report of her concerns to iris?

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Maria shouldn't  ethical responsibility  her concerns to iris because she has an ethical duty to the corporation.

The capacity to perceive, understand, and uphold a variety of ethical concepts and values in accordance with the norms in a certain industry or context. Setting a higher minimum wage, ensuring that all materials are acquired ethically, and ensuring that all employees receive competitive compensation, full benefits, and respectful treatment are a few instances of common examples of ethical responsibility. Through our decisions, ethics teaches us how to improve the world. The importance of ethics in business and personal life is equal. Business executives play a special role in determining the ethical climate of their companies, which has an impact on their larger communities as well.

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1. In comparing bonds with notes, bonds are typically issued to a single lender while notes are issued to many lenders.
2. Bonds that require payment of the full principal at a single maturity date are known as term bonds.
3. Most bonds require payment of the full principal at a single maturity date.
4. The rate of interest specified in a bond contract as the interest rate to be paid by the company to investors in the bond is known as the market rate.
5. The amortization schedule for a bond issued at a discount has a carrying value that increases over time.
6. The carrying value of bonds issued at a discount or at a premium will be different from their face amount at maturity.
7. When interest rates go down, bond prices go up.

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When comparing bonds and notes, it is important to highlight that bonds are normally issued to a single lender whereas notes are issued to a variety of lenders. Term bonds are bonds that must have the entire amount paid at one maturity date. 

The full principal of the majority of bonds must be paid at the bond's single maturity date. The market rate is the interest rate that is stipulated in a bond contract as the interest rate that the company will pay to investors in the bond. 

The carrying value of the amortization schedule for a bond issued at a discount rises with time. Bonds issued at a discount or a premium will have a carrying value that is different from their face value when they mature. Bond prices rise as interest rates decrease.

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the audit committee has raised a few issues that the internal audit activity will examine during an operational audit for the current year. when performing the preliminary survey, which of the following is not an appropriate technique? developing questionnaires. performing interviews. determining the largest risk of financial statement misstatement. all of the answers are appropriate techniques.

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C. Determining the largest risk of financial statement misstatement.

The threat of material misstatement is the risk that the economic statements of an agency were misstated to a material degree. Risks of misstatement have been recognized in the use of data acquired from performing risk evaluation procedures.

Determining potential misstatements isn't the goal of an operational audit. Additionally, a very last danger evaluation is advanced at a later time in the audit, now no longer at some point in the preliminary survey. An initial danger evaluation is suitable at some point in this stage.

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how did large trade deficits hurt the east asian countries in the mid 1980s? (recall that trade deficits are equivalent to inflows of financial capital from abroad.)

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Answer:

How did large trade deficits hurt the East Asian countries in the mid 1980's? (Recall that trade deficits are equivalent to inflows of financial capital from abroad.) Foreign investors worried about repayment so they began to pull money out of these countries.

An example of a correction of an error in previously issued financial statements is a change:
a. from the FIFO method of inventory valuation to the LIFO method.
b. in the service life of plant assets, based on changes in the economic environment.
c. from the cash basis of accounting to the accrual basis of accounting.
d. in the tax assessment related to a prior period.

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An example of a correction of an error in previously issued financial statements is a change: c. from the cash basis of accounting to the accrual basis of accounting.

Which of the following represents a correction to a mistake in financial statements that have already been published?

 A switch from the cash basis to the accrual basis of accounting is an illustration of how to fix a mistake in financial statements that were previously published. Transactions that do not involve cash are not accounted for under the cash basis; nonetheless, they are included under the accrual basis.

Correcting an inaccuracy in financial statements that have already been published should be treated as a prior-period adjustment. As a result, such a mistake should be reported as an adjustment to the beginning balance of retained earnings in the year it is found.

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direct labor is sometimes the appropriate basis for assigning overhead cost to products. it is appropriate to use direct labor when which of the following is true? (1) direct labor constitutes a significant part of total product cost. (2) a high correlation exists between direct labor and changes in the amount of overhead costs. group of answer choices (1) only (2) only either (1) or (2) both (1) and (2)

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In some cases, using direct labor as the basis for assigning overhead costs to products is reasonable. Direct labor should be used when: (1) direct labor accounts for a sizable portion of the cost of the final product. (2) There is a strong relationship between changes in the amount of direct labor and changes in overhead costs. Both (1) and (2) are correct.

While indirect costs are related to support labor, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line. Direct labor is the work done by employees that deliver the service directly to the customers for a firm that offers services to its clients, such as auditors, attorneys, and consultants.

The wages paid are regarded as indirect if the work completed cannot be linked to a single employee. You must first determine the overhead allocation rate before you can allocate the overhead charges. To do this, divide the total overhead by the number of hours of direct labor. This indicates that you must budget $3.33 in overhead for every hour that it takes to produce a product. Direct and indirect (overhead) labor costs are separated.

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what is the first step in the strategic planning process? group of answer choices define an organization's mission. monitor and adapt plans. assess the competitive position. develop strategies for reaching objectives.

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Option a. defining an organization's mission is the first step in the strategic planning process.

Strategic planning is the process of creating a clear, quantifiable goal or, more frequently, a group of goals that will help your organization achieve its objectives. To meet the variable cadence of attaining business goals, numerous teams from across the firm might use the strategic plan.

Tracking your progress toward goals can be made possible by having a strategic strategy in place. The success of your firm can be directly impacted by each department's and team's progress when they are aware of the overall plan of the business, resulting in a top-down approach to tracking key performance indicators (KPIs).

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most stores offer rotating promotions that provide discounts on various products. however, at many of them, you must become a rewards member to take advantage of the deals. the price of the membership is free. you are probably familiar with this process at grocery stores, pharmacies, and even pet supply chains.

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The hurdles that customers typically have to clear in order take advantage of those promotional offers include remembering to carry their special discount to retailer and giving clerk their phone number.

What are promotional discounts?

Discount codes are customized or widely available codes that are offered to clients as a purchase incentive and lower the cost of an order. Coupon codes are a useful tool for e-commerce businesses to draw clients and promote repeat business.

Why are sales crucial to businesses?

A first step in the user implementation is creating awareness and interest, and offers are a tried-and-true method to do so. Discounts attract customers and frequently spread through utterance, which is a successful strategy for reaching new customers while minimizing customer acquisition costs.

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acme inc. just issued a bond with a $10,000 face value and a coupon rate of 7%. if the bond has a life of 30 years, pays semi-annual coupons, and the yield to maturity is 9%, what will the bond sell for? a. $7,936.20 b. $10,000 c. $7,945.27 d. $4,349.49

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The bond sell for is a. $7,936.20.

Number of periods = n = 30*2 = 60 semiannual periods

Yield I/Y= 9%/2 = 4.5%

Semiannual Payment P = 7%*10000/2 = $350

Face Value FV = $10000

Hence, PV = P/(1+r) + P/(1+r)2 + .... + P/(1+r)n + FV/(1+r)n

= P[1 - (1+r)-n]/r + FV/(1+r)n = 350(1 - 1.045-60)/0.045 + 10000/1.04560 = $7936.20

Bonds are a sort of safety sold with the aid of governments and agencies, as a way of elevating cash from traders. From the vendor's attitude, promoting bonds is therefore a way of borrowing cash.

Bonds are issued by governments and agencies after they need to elevate money. via shopping for a bond, you are giving the provider a mortgage, and they agree to pay you lower back the face price of the mortgage on a particular date, and to pay you periodic interest bills alongside the way, normally twice a yr.

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employees indicate their willingness to be represented by a union by signing a/an: a. stipulation card b. agreement card c. authorization card d. selection card

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Employees indicate their willingness to be represented by a union by signing an authorization card.

Authorization for a card is consent and authorization to carry out transactions.

The bank that issues the customer's car or, to put it simply, the customer's ban is the entity that grants this authority. The procedure often involves a credit card processor and verifies the card data.

A transaction is a business event that affects the financial statements of an organization financially and is documented as an entry in its accounting records.

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the equilibrium price is $20 in the short run. what is the long run equilibrium price? how did you arrive at your answer?

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The company is making money in the short run. At MC=Price, market equilibrium occurs. Average total cost is higher than pricing at this level.

What Is Equilibrium?

When market supply and demand are in balance, prices become steady. This is known as equilibrium. In general, a surplus of goods or services leads to lower prices, which increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.

A short-run market equilibrium is defined as a price and an amount of production, where (1) supply and demand are equal, (2) businesses choose variable inputs and output to maximize profits, and (3) supply and demand are determined from utility maximization.

When prices have fully matched production costs and the economy is operating at its full potential, a long run market equilibrium occurs. The rate of unemployment falls to its natural level in a long-run market equilibrium. An economy is operating at full capacity when this happens, and its actual GDP is equal to its potential GDP.

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What dimension of the business use of cloud systems focus on the benefits of rapid deployment, on-demand provisioning, and disaster recovery?Question 3 options:Streamlined Business DevelopmentFinancial SavingsRegulatory ComplianceIncreased Flexibility

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The dimension of the business use of cloud systems focuses on the benefits of rapid deployment on-demand provisioning, and disaster recovery as Increased Flexibility. Option D.

The main reason cloud computing is important for business is that it enables companies to flexibly scale and focus their efforts on running their business instead of managing complex IT infrastructures. One of the best ways to optimize cloud computing for your business is to work with a cloud partner.

The public cloud model is the most widely used cloud service. This type of cloud is a popular option for web applications, file sharing, and non-sensitive data storage. Service providers own and operate all the hardware required to run the public cloud. Cloud computing increases business flexibility. Quickly scale resources and storage to meet business needs without investing in physical infrastructure.

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employers who provide health insurance to their employees must ensure that the employees’ health information is not disclosed to unauthorized parties.a. trueb. false

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True employers who offer health insurance to their employees have a responsibility to safeguard the health information of those employees.

Managers have the obligation to give a protected work environment. Employers are required to comply with all OSHA safety and health standards and provide their workers with a workplace free of serious hazards. Safety and health issues must be identified and addressed by employers.

In Canada, can an employer request medical record?

The employer may only request the information necessary to determine whether an employee can return to work, provide disability leave, or accommodate the employee. The employer will only be able to request the diagnosis in exceptional situations.

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an investor buys a call at a price of $5.60 with an exercise price of $51. at what stock price will the investor break even on the purchase of the call? (round your answer to 2 decimal places.)

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If an investor buys a call at a price of $5.60 with an exercise price of $51. at what stock price will the investor break even on the purchase of the call is : $56.60.

How to find the stock price?

Using this formula to determine or find the stock price that the investor will break even on the purchase of the call

Stock price = Exercise price + Call price

Where:

Exercise price = $51

Call price = $5.60

Let plug in the formula

Stock price = $51 + $5.60

Stock price = $56.60


Therefore the stock price is the amount of $56.60.

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an economy is not able to develop because of a lack of capital. which of the following strategies would you suggest this economy pursue? a. lower interest rates b. impose quotas on how much capital can be imported from other countries to reduce dependency on foreign capital c. increase the political stability of the economy d. nationalize private enterprises because the government sector is not motivated by profit maximization

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When an economy is unable to develop because of a lack of capital, a strategy it can pursue is c. increase the political stability of the economy

How can a nation get more capital ?

For an economy to be able to get more capital to flow into it, there are several strategies that can be used. One of them is to increase interest rates as this would entice investors to invest in the economy to be able to get returns from those interest rates.

Another way would be to increase the political stability of the country as this would also entice investors to bring capital. Investors don't like putting their money in places that are not politically stable.

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Answer: c. increase the political stability of the economy

Explanation:

which technology do managers use when they share information within their own companies through company computer networks?

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Intranet technology is used by managers when they share information within their own companies through company computer networks.

A computer is a digital electrical device that can be configured to automatically perform logical or mathematical operations in sequence. A program is a general set of operations that modern computers are capable of performing. Various jobs can be performed by the computer through these applications.

A computer system is a computer that is expected to be fully functional, provided the operating system, peripherals, and necessary hardware are provided. The phrase "computer network" or "computer cluster" can also be used to describe a collection of connected computers that function as a unit. Computer control systems are used in a wide variety of industrial and consumer goods.

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In the open-economy macroeconomic model, the key determinant of net capital outflow is the: ________

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In the open-economy macroeconomic model, the key determinant of net capital outflow is the real interest rate.

As real interest rates rise domestic assets become more attractive to domestic and foreign investors. In the open economy macroeconomic model, the main determinant of net capital outflow is the real exchange rate.

The decisive factor in net capital outflow is the real interest rate. When US interest rates are high, US assets are more attractive and US net capital outflows are lower. This demonstrates the negative relationship between interest rates and net capital outflows. The monetary approach of open economy macroeconomics emphasizes the determinants of money demand and money supply.

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which of the following accounts is a stockholders' equity account? a.accounts payable b.cash cmon stock d.prepaid insurance

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The Common stocks are stocks also known as securities that show how and who has ownership in the corporation has stockholders equity account. Thus option (c) is correct.

What are Common Stocks?

The common stock is a form of corporate equity ownership, a type of security. Those who own common stock have some control over the corporation and are decision makers within the company.

The advantages of common stock are that those who own them have shares in the company and make decisions. A disadvantage of common stock is the financial risk  that comes with it.

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12. what would a person in the protean career path do? a.remain in the company for many years b.train for a career, but then never pursue any jobs related to that training c.retire early d.change jobs frequently

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The correct option for this question is option D. change jobs frequently.

One of the ways that career portability and protean careers are at present manifest is in the ascent of contingent business. In the US, the largest boss at the hour of this composing is a temporary agency, Manpower, Inc. Over 90% of U.S. managers utilize temporary laborers as part of their staffing blend, as recognized by von Hipple et al. in 1997, and nearly 3 million individuals filled in as temporary laborers in a solitary year.

An alternate, exceptionally influential viewpoint is the idea of a protean career (Hall and Mirvis, 1995; Hall, 2004). The protean career addresses another sort of career contract in which careers are adaptable and dynamic and managed by the individual instead of the organization. Achievement is determined based on internal rather than external measures, as the individual moves among occupations and organizations. Obligation regarding achievement is reliant upon the individual, who engages in independent, constant learning all through the lifespan (London and Bassman, 1989; London and Smither, 1999).

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What are the proper procedures in serving food and beverage order properly?

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Handle the dishes strictly by the edges and avoid touching the food with your fingers. Bring out all the food for the table at once. Never let a visitor go hungry.

Make sure the visitors don't want to order anything else before giving them the bill. In the F&B establishments, a variety of policies are used to determine guest bills. Some people prefer that customers pay with cash at the cashier's counter. To guarantee that just the correct amount is charged to the customer in this situation, the serving staff must accompany the customer to the payment counter. Any firm that offers services relies on interaction with the customers. In fact, the support team must always be ready to manage unforeseen scenarios. When moving about the dining room with the trays in their hands, the serving staff must use caution.

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according to the e-waste in south africa video case, what has resulted in a business opportunity for bolunga electronic waste company to provide recycling e-waste services?

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The absence of a trash recycling system in South Africa gave the electronic waste company Bolunga a business opportunity.

What issues do countries face when there is no recycling infrastructure?

There is an accumulation of trash due to a lack of recycling infrastructure.

The absence of a recycling system harms the nation's environment and appearance.

The populace is encouraged to live in an unhealthy environment by the absence of a recycling system.

What sparked a company's business opportunity is what we are referring to when we inquire as to what caused it. The government's failure to establish a framework for recycling this garbage led to the chance for the e-waste company Bolunga to recycle e-waste items.

South Africa has suffered as a result of the major international countries' inability to manage their technological garbage. As a result, these nations ship their electronic garbage to distant nations like South Africa.

Due to the inability of local governments to handle it, this rubbish builds up and results in a number of social, economic, and environmental issues that worsen over time.

Recycling businesses therefore have the chance to use this as a source of revenue that benefits the environment, society, and the local economy.

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the combination of economic conditions-rising prices, rising interest rates, and high unemployment-that hit the oil-dependent western nations as a result of the opec oil embargo became known as what?

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The combination of economic conditions-rising prices, rising interest rates, and high unemployment that hit the oil-dependent western nations as a result of the OPEC oil embargo became known as inflation.

Economics is the observation of scarcity and its implications for the usage of assets, manufacturing of goods and services, an increase of manufacturing and welfare over the years, and a great variety of different complex problems of the important subjects to society.

Economics is the observation of how human beings allocate scarce assets for manufacturing, distribution, and intake, both for my part and together. the 2 branches of economics are microeconomics and macroeconomics. Economics focuses on performance in manufacturing and trade.

Instance: whilst Corn crop production will increase the farmers lower the rate of the crop so they can sell off their produce. If the supply is simply too high then the call for i.e. the amount of corn needed to feed the people of the country, the produce had to be wasted and farmers lose their cost of manufacturing.

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When calculating cash flow, why is depreciation first subtracted but then added back in?

- Because it is not a real cash outflow but does create a tax deductible expense
- Because it is an expense that can be immediately and fully deducted from the revenues of the firm
- Because it changes from negative to positive as the project moves forward
- Because it serves to increase the amount of tax the firm will have to pay to the tax authorities
- Because it has the unusual characteristic of switching signs in the middle of most projects

Answers

The depreciation can be best described as-  Because it is not a real cash outflow but does create a tax deductible expense.

Depreciation is the estimated decrease in value of fixed assets over the course of a fiscal year. Large lump sum purchases are made for tangible things like real estate, machinery, vehicles, and so forth.Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life. How much of an asset's value has been used is shown through depreciation. It enables businesses to purchase assets over a predetermined length of time and generate income from those assets.

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gina davidson has received $50,000 in a divorce settlement and is trying to decide how to invest it. she has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. what aspect of investing is she most concerned about?

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She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. Risk aspect of investing is she most concerned about.

Investing is using money to buy an asset and increase its value over a period of time. Investing requires sacrificing your current wealth. B. Time, Money, or Effort. In finance, the purpose of investment is to generate profit from the assets invested.

Investing is an effective way to invest money and build wealth. With smart investments, money can outperform inflation and increase in value. The huge growth potential of investment is largely due to the power of compound interest and the risk/return trade-off.

Income investing is an investment strategy focused on building investment portfolios specifically structured to generate regular income. The sole purpose of income-based investment strategies is to generate a steady stream of income.

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According to many CEOs, corporate _______ is the key to making a company one of the best.

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According to many CEOs, corporate culture is the key to making a company one of the best.

A company's corporate culture is the personality of the organization. It is the way the company interacts with its employees, customers, and the community. The corporate culture sets the tone for how the company does business and how it treats its employees.

A positive corporate culture can help a company attract and retain employees, and can help create a positive work environment. A negative corporate culture can have the opposite effect, and can lead to employee turnover in company.

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yield to maturity and future price: a bond has a $1,000 par value , 10 years to maturity, and a 7% annual coupon and sells for $985. a.) what is its yield to maturity? b.) assume that the yield to maturity remains constant for the next 3 years. what will the price be 3 years from today?

Answers

a) Its yield to maturity is 7.215%. b) The price be three years from today is 988.46.

A) Solve for I using fv 1000 n 10 pmt 70 pv -985

= 7.215%

b) the value of PV over the next three years using the variables fv1000, n 7, and pmt70

=988.46

*price reflects the number of years that have passed, therefore n is 7 when three years have passed.

* more significant than before as you draw near

The return that is realized on a bond if it is held to maturity is known as yield to maturity. It is calculated by factoring in the bond's face value, its current price, the bond's yearly or semiannual coupon amount, and the number of years to maturity.

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jackits has 5 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 20 thousand bonds. if the common shares are selling for $28 per share, the preferred shares are selling for $13.50 per share, and the bonds are selling for 98 percent of par, what would be the weight used for common stock in the computation of jackits' wacc?

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jackits has 5 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 20 thousand bonds. if the common shares are selling for $28 per share, the preferred shares are selling for $13.50 per share, and the bonds are selling for 98 percent of par, the weight used for common stock in the computation of jackits' wacc are Weight of common stock 80.88, Weight of preferred stock 7.80, Weight of Bonds 11.32.

the weight can be calculate as follows:

first we should calculate the the value of stock

Common Stock

Value = Number of shares × Price

         = 5,000,000 × $28

         = $140,000,000

Preferred Stock

Value = Number share × Price

         = 1,000,000 × $13.50

         = $13,500,000

Bonds

Value = Number of bonds × Price

         = 20,000 × $980

         = $19,600,000

Total value = $140,000,000+ $13,500,000 + $19,600,000

                  = 173,100,000

then we can calculate the weight

Weight of common stock = Respective Value ÷ Total Value

                                                = $140,000,000 ÷ 173,100,000

                                                 = 80.88

Weight of preferred stock = Respective Value ÷ Total Value

                                                = $13,500,000 ÷ 173,100,000

                                                = 7.80

Weight of Bonds = Respective Value ÷ Total Value

                                  = $19,600,000 ÷ 173,100,000

                                  = 11.32

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how would the federal reserve stimulate the united states economy and reduce unemployment?

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To help accomplish this during recessions, the Fed employs various monetary policy tools in order to suppress unemployment rates and re-inflate prices.

A recession is a huge, pervasive, and continual decline in the financial pastime. Economists measure a recession's length from the prior growth's height to the downturn's trough. Recessions may final as low as some months, but the financial system may not recover to its former height for years. There were eleven recessions considering 1948, averaging out to approximately one recession every six years. forty-nine but, durations of financial enlargement are numerous and have lasted as little as three hundred and sixty-five days or as long as a decade.

Unemployment frequently rises at some point of recessions, and general employment degrees can flatline or turn negative, stated Pugliese. in addition, GDP increase has a tendency to cut back all through recessions because there may be much less customer demand and less personnel, leading to lower production of products and offerings.

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