Zacher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's required rate of return?
A. 11.36%
B. 11.65%
C. 11.95%
D. 12.25%
E. 12.55%
Answer: C
You might also like to view...
Firms are increasingly recognizing the importance of influencing consumers at the point of purchase
Indicate whether the statement is true or false
Some think that renewed focus on exchange rates would be a good path forward for the IMF, which is struggling with core issues related to its purpose.
Answer the following statement true (T) or false (F)
Organizations that sell products to industrial markets or a few wholesalers tend to focus their promotion efforts on
A. advertising. B. word-of-mouth communication. C. public relations. D. sales promotion. E. personal selling.
A bond portfolio manager believes that interest rates are about to increase. Given this belief, the manager should buy long duration bonds and sell short duration bonds
Indicate whether the statement is true or false.