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24 results for "required rate return"
Calculation of Required Rate of Return By Homework Help Classof1
eBook (PDF): $5.99
"Magee Company's stock has a beta of 1.20, the risk-free rate is 4.50%, and the market risk premium is 7.00%. What is Magee's required return? "
Difference in Required Rate of Return By Homework Help Classof1
eBook (PDF): $5.99
Kamath Manufacturing Company has a beta of 1.80, while Gehr Industries has a beta of 0.85. The required return on the stock market is 12.00%, and the risk-free rate is 5.00%. What is the difference... More > between Kamath's and Gehr's required rates of return? (Hint: First, find the market risk premium, then find required returns on the stocks.)< Less
How Inflation and Interest Rates Affect Stock Returns of Concentrated Companies and Competitive Companies in the United Kingdom By Farrukh Khan
Paperback: $140.00
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This study presents an attempt to examine the relationship that exists between inflation, interest rate, stock price and stock returns for two stocks listed on the London Stock Exchange using... More > time-series data and Granger causality tests. Five-year monthly historical data from January 2005 to the present used for the study is analysed using Stata, which has the built-in commands to perform the required time-series analysis. One of the selected stocks, the stock for British Telecom, represents a concentrated company while the other stock, that of Aberdeen Asset Management, represents a competitive company. Results of the analysis suggest that for the United Kingdom market, inflation and interest rate present a significant Granger relationship. However, because published literature on the impact of macroeconomic variables on the stock market presents conflicting evidence, previous studies both corroborate and refute the results of this study.< Less
How Inflation and Interest Rates Affect Stock Returns of Concentrated Companies and Competitive Companies in the United Kingdom By Farrukh Khan
eBook (PDF): $127.00
This study presents an attempt to examine the relationship that exists between inflation, interest rate, stock price and stock returns for two stocks listed on the London Stock Exchange using... More > time-series data and Granger causality tests. Five-year monthly historical data from January 2005 to the present used for the study is analysed using Stata, which has the built-in commands to perform the required time-series analysis. One of the selected stocks, the stock for British Telecom, represents a concentrated company while the other stock, that of Aberdeen Asset Management, represents a competitive company. Results of the analysis suggest that for the United Kingdom market, inflation and interest rate present a significant Granger relationship. However, because published literature on the impact of macroeconomic variables on the stock market presents conflicting evidence, previous studies both corroborate and refute the results of this study.< Less
Stock valuation and Comparison of Returns By Homework Help Classof1
eBook (PDF): $5.99
"Stocks A and B have the following data. The market risk premium is 6.0% and the risk-free rate is 6.4%. Assuming the stock market is efficient and the stocks are in equilibrium, which of the... More > following statements is CORRECT? A B Beta 1.10 0.90 Constant growth rate 7.00% 7.00% a. Stock A must have a higher stock price than Stock B. b. Stock A must have a higher dividend yield than Stock B. c. Stock B’s dividend yield equals its expected dividend growth rate. d. Stock B must have the higher required return. e. Stock B could have the higher expected return. "< Less
Energy Utility Rate Setting: A Practical Guide to the Retail Rate-Setting Process for Regulated Electric and Natural Gas Utilities By Lowell E. Alt Jr.
eBook (ePub): $7.99
A Practical Guide to the Retail Rate-Setting Process for Regulated Electric and Natural Gas Utilities. Electric and natural gas utility regulation in many states still involves the traditional form... More > of rate of return regulation. This book explains how the traditional retail rate-setting process is commonly done for electric and natural gas utilities. This process includes establishment of the annual revenue the utility requires to cover its costs, determination of the cost of serving each customer class through the use of a cost of service study and finally the design of rates. The book includes a discussion of revenue requirement, rate base, cost of capital, expenses, revenues, rate-making objectives, cost of service studies, rate design, the rate case process, tariff policies, metering, service quality, and other types of cases affecting rates. The book concludes with a numerical example showing the calculation steps from revenue requirement to rate design.< Less
Determination of Current Stock Price and Capital Gains By Homework Help Classof1
eBook (PDF): $5.99
"A stock is expected to pay a year-end dividend of $2.00, i.e., D1 = $2.00. The dividend is expected to decline at a rate of 5% a year forever (g = -5%). If the company is in equilibrium and... More > its expected and required rate of return is 15%, which of the following statements is CORRECT? a. The company’s current stock price is $20. b. The company’s dividend yield 5 years from now is expected to be 10%. c. The constant growth model cannot be used because the growth rate is negative. d. The company’s expected capital gains yield is 5%. "< Less
Calculation of Current Stock Price By Homework Help Classof1
eBook (PDF): $5.99
"Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the... More > required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price? a. $14.52 b. $14.89 c. $15.26 d. $15.64 e. $16.03 "< Less
Stock valuation and Capital Gains yield By Homework Help Classof1
eBook (PDF): $5.99
"Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? X Y Price $30 $30 Expected... More > growth (constant) 6% 4% Required return 12% 10% a. Stock X has a higher dividend yield than Stock Y. b. Stock Y has a higher dividend yield than Stock X. c. One year from now, Stock X’s price is expected to be higher than Stock Y’s price. d. Stock X has the higher expected year-end dividend. e. Stock Y has a higher capital gains yield. "< Less
Selection of Purchase Alternatives under NPV By Homework Help Classof1
eBook (PDF): $5.99
" Prince Company's required rate of return is 10%. The company is considering the purchase of three machines, as indicated below. Consider each machine independently. Required: A. Machine A... More > will cost $25,000 and have a life of 15 years. Its salvage value will be $1,000, and cost savings are projected at $3,500 per year. Compute the machine's net present value. b. How much will Prince Company be willing to pay for Machine B if the machine promises annual cash inflows of $5,000 per year for 8 years? c. Machine C has a projected life of 10 years. What is the machine's internal rate of return, to the nearest whole percent, if it costs $30,000 and will save $6,000 annually in cash operating costs? Would you recommend purchase? Explain. "< Less

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