What is the company’s cost of common stock, rs?
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A: The provided information are: Beta = 1.6 Risk free rate = 4.7% Expected return = 13%
Q: Steady Company's stock has a beta of 0.17. If the risk-free rate is 6.1% and the market risk premium…
A: Stock beta (B) = 0.17 Risk free rate (RF) = 6.1% Market risk premium (MR) = 7.1%
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A: The capital asset pricing model is the model which shows the relationship between the systematic…
Q: the company's common stock has a beta, β, of 1.2. The risk-free rate is 6%, and the market return is…
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Q: Kaiser Aluminum has a beta of 0.70. If the risk-free rate (RRF) is 5.0%, and the market risk premium…
A: Following details are given : Beta = 0.70 Risk free rate (RRF) = 5.0% Market risk premium (RPM) =…
Q: Hoolahan Corporation's common stock has a beta of 1.24. Assume the risk-free rate is 4.9 percent and…
A: Formula: Cost of equity = Risk free rate + (beta*(market rate - risk free rate))
Q: porter's Inc.'s stock has an expexted return of 12.5%, a beta of 1.25, and is in equilibrium. If the…
A: Computation of market risk premium:Market risk premium is 8.40%.Excel spread sheet:
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Q: FlavR Co stock has a beta of 2.03, the current risk-free rate is 2.03 percent, and the expected…
A: We are require to calculate the FlavR co's cost of equity in this question : We can calculate the…
Q: TJ Co stock has a beta of 1.64, the current risk-free rate is 5.94 percent, and the expected return…
A: In the given question we are require to calculate the TJ co cost of equity from following details:…
Q: CEPS Group stock has a beta of 1.05. The risk-free rate of return is 5.25 percent and the market…
A: Beta = 1.05 Risk free rate = 5.25% Market risk premium =9%
Q: Stock Ramsay Ltd. has an expected rate of return of 12% and beta of 1. Stock Gordon Ltd. has an…
A: Expected return of Ramsay = 12% Expected return of Gordon = 13% Rf = 5% Rm = 11%
Q: The DR Company’s common stock has a beta of 1.07. What is the company’s cost of equity capital if…
A: As per Capital asset pricing model Cost of equity capital = Risk free + Beta×[Return of market -…
Q: The Rhaegel Corporation's common stock has a beta of 1.5. If the risk-free rate is 6 percent and the…
A: There are several methods for the calculation of cost of capital. All these methods are estimating…
Q: The Rhaegel Corporation's common stock has a beta of 1.8. If the risk-free rate is 4.9 percent and…
A: 1. COST OF EQUITY CAPITAL : = RISK FREE RATE + BETA X RISK PREMIUM 2. RISK PREMIUM : = EXPECTED…
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Q: Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00 percent and the risk-free…
A: Calculating the cost of equity capital using the formula of capital asset pricing model. We…
Q: Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00% and the risk- free rate is…
A: Following details are given in the question: Beta of Stock = 1.23 Market Risk premium = 7.00% Risk…
Q: The Graber Corporation's common stock has a beta of 1.6. If the risk-free rate is 4.7% and the…
A: Following details are given in the question for Graber Corporation: Beta = 1.6 Risk free rate = 4.7%…
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A: For the given risk and return, Comparison between two shares can be made basis coefficient of…
Q: The Rhaegel Corporation's common stock has a beta of 1.8. If the risk-free rate is 4.9 percent and…
A: given, beta = 1.8 risk free rate ( rf )= 4.9% expected return of market ( rm )= 11%
Q: The Rhaegel Corporation's common stock has a beta of 11. If the risk-free rate is 5.1 percent and…
A: Given, Beta = 1.1 Risk-free rate (Rf) = 5.1% Expected return of the market(Rm) = 13%
Q: The common stock of Anthony Steel has a beta of 0.80. The risk-free rate is 5 percent and the…
A: Cost of equity : As per capital asset pricing Cost of equity is calculated by the use of risk free…
Q: Porter's Inc.'s stock has an expexted return of 12.5%, a beta of 1.25, and is in equilibrium. If the…
A: Following details are given in the question for Porter's Inc Stock: Expected Return = 12.5% Beta =…
Q: the company's common stock has a beta, β, of 1.2. The risk-free rate is 6%, and the market return is…
A: Beta (β) = 1.2 Risk free rate (Rf) = 0.06 Market return (Rm) = 0.11 Cost of common equity (rs) = ?…
Q: CEPS Group stock has a beta of 0.95. The risk-free rate of return is 3.75 percent and the market…
A:
Q: teady Company's stock has a beta of 0.21. If the risk-free rate is 5.9% and the market risk…
A: Cost of Equity Capital: Cost of equity refers to the return that a firm or a company must give to…
Q: JaiLai Cos. stock has a beta of 0.9, the current risk-free rate is 5.5 percent, and the expected…
A: Stock beta = 0.90 Risk free rate = 5.5% Market return = 10%
Q: The Penny Corporation's common stock has a beta of 1.8. If the risk-free rate is 6.9% and the…
A: We require to calculate the Penny corporation's cost of equity capital in this question: As per…
Q: Analogue Technology has preferred stock outstanding that pays a $9 annua dividend. It has a price of…
A: The required rate of return is the return that the investor expects for investing in the asset. When…
Q: Hoolahan Corporation’s common stock has a beta of 1.11. Assume the risk-free rate is 4.6 percent and…
A: Given: Beta = 1.11 Risk free rate = 4.6% Market rate = 12.1%
Q: B24&Co stock has a beta of 1.66, the current risk-free rate is 3.16 percent, and the expected return…
A: Here, Risk Free Rate is 3.16% Beta is 1.66 Expected Return on the Market is 10.66%
Q: The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 4.5 percent and…
A: The cost of capital is calculated using CAPM. CAPM refers to the capital asset pricing model. It…
Q: Steady Company's stock has a beta of 0.15. If the risk-free rate is 5.9% and the market risk…
A: The cost of equity capital means the least rate of return, a company must receive on its equity…
Q: The common stock of Peeta Inc. has an expected return of 15.0%, the risk-free rate is 3.20%, and the…
A: Calculate the beta as follows:
Q: The Rhaegel Corporation's common stock has a beta of 1.1. If the risk-free rate is 5.1 percent and…
A: In this we have to use capital assets pricing model to calculate the cost of equity.
Q: Ice Company stock has a beta of 1.92, the current risk-free rate is 5.17 percent, and the expected…
A: Beta = 1.92 Risk free rate = 5.17% Market return = 15.17%
Q: The Rhaegel Corporation's common stock has a beta of 1.2.f the risk-free rate is 5 percent and the…
A: Cost of equity can be defined as the expected return demanded by the shareholders of a company. In…
Q: B24&Co stock has a beta of 1.60, the current risk-free rate is 3.10 percent, and the expected return…
A: In the given question we require to calculate the cost of equity for B24&co
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The common stock of Anthony Steel has a beta of 0.80. The risk-free rate is 5 percent and the market risk premium (rM - rRF) is 6 percent. What is the company’s cost of common stock, rs?
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- Steady Company's stock has a beta of 0.24. If the risk-free rate is 6.1% and the market risk premium is 6.9%, what is an estimate of Steady Company's cost of equity?The common stock of Anthony Steel has a beta of 1.1. The risk-free rate is 5 percent and the market risk premium (rm - rf) is 5 percent. What is the company's cost of common stock, rs? Express your answer in percentage (without the % sign) and round it to two decimal places.Crane Industries, common stock has a beta of 1.5. If the current risk-free rate is 3.6 percent and the market risk premium is 5 percent, what is Crane’s cost of common stock?
- Steady Company's stock has a beta of 0.21. If the risk-free rate is 5.9% and the market risk premium is 6.9%, what is an estimate of Steady Company's cost of equity?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%. a. What is the expected return on the market? b. What is the current P/E ratio for Company Q?: Bradford manufacturing company has abta of 1.45 while Farley industries has abeta of 0.85 the holds the entire stock market is 12.0 % the risk –free rate of interest is 5% .By how much does Bradfords required return exceed Farley s required return ?
- Hoolahan Corporation's common stock has a beta of 1.12. Assume the risk-free rate is 4.7 percent and the expected return on the market is 12.2 percent. What is the company's cost of equity capital? Cost of equity _________%What is the cost of a issuing common stock at S50 if the flotation cost is 2.5%, the beta is 1.3, the risk - free rate is 2% and the market risk premium is 6%?The Lenzie Corporation's common stock has a beta of 1.30. If the risk-free rate is 5.3% and the expected return on the market is 11%, what is the company's cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) Cost of equity capital %
- Hoolahan Corporation's common stock has a beta of 1.29. Assume the risk-free rate is 5.4 percent and the expected return on the market is 12.9 percent. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %Steady Company's stock has a beta of 0.17. If the risk-free rate is 6.1% and the market risk premium is 7.1%, what is an estimate of Steady Company's cost of equity? ... Steady's cost of equity capital is %. (Round to one decimal place.)If risk free rate is 2%, market risk premium (also called the equity risk premium) is 5%, and a company has a beta of 1.5. What is the company’s cost of equity?