Business
19.02.2023 16:40
174
362
10
Solved by an expert
Calculate the required rate of return for Avy Inc., assuming that the company has
Calculate the required rate of return for Avy Inc., assuming that the company has a beta of 1.10, while investors expect treasury bills to be yielding 3.0%, with a market risk premium is 5.0%.
Show Answers
ineedtopeebeforethec
5,0(1 marks)
8.5%
Explanation:
Avy incorporation has a beta of 1.10
The risk free rate is 3.0%
The market risk premium is 5.0%
Therefore, the required rate of return can be calculated as follows
Required rate of return= Risk-free rate+beta(market Risk premium)
= 3.0% + 1.10(5.0%)
= 3.0%+5.5
= 8.5%
Hence the required rate of return is 8.5%
mmaglaya1
4,9(32 marks)
According to OSHA, the employer must identify emergency escape routes.
Popular Questions about the subject: Business
Franklin corporation is comparing two different capital structures,...
Business
16.02.2023 19:31
Joseph Pierce is the managing director of Drake Coal Power Plant...
Business
14.07.2021 18:35
A bond trader observes the following information: 1.The Treasury...
Business
06.12.2020 09:59
Record the following LO 6 note receivable transactions in the...
Business
03.05.2022 13:05
In making business decisions, Glenda, personnel manager for...
Business
03.12.2020 18:23
Tsunami Ltd. hired a consultant to assess the corporate culture...
Business
05.02.2022 11:26
Novak Inc. enters into an agreement on March 1, 2020, to sell...
Business
05.06.2021 13:36
Which of these is the requirement of the firm to keep a certain...
Business
02.01.2021 16:52
On September 1, 20x3, Brak Co. borrowed on a $1,350,000 note...
Business
16.02.2020 18:06
Jack’s Snow Removal Company received a cash advance of $6,000...
Business
03.09.2020 12:33
New questions by subject
Cookies cost $5.40 per dozen. What is the unit rate Price per...
Mathematics
10.06.2022 20:06
What did the Supreme Court decide in the case Worcester v. Georgia?...
History
09.06.2020 01:01
The following problem refers to triangle ABC. Find the area...
Engineering
17.05.2021 20:01
Qué corriente Marina baña las costas de San Fernando y De qué...
Geography
08.06.2023 13:41
The author includes an image to help the reader better understand...
English
02.02.2022 22:42
The table below shows the salaries of an employee based on their...
Mathematics
25.08.2022 07:44
Why do some of the results produce an acid?...
Chemistry
18.03.2021 13:10
The supplies account has a balance of $1,200 at the beginning...
SAT
06.09.2021 12:00
A wheel 33 cm in diameter accelerates uniformly from 240 rpm...
SAT
11.01.2023 11:57
Jolanda is a salesperson in a retail clothing store. As a sales-minded...
Business
06.03.2022 21:33
Find out answers to questions
from an AI-bot
from an AI-bot
Get full access
Answers
