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Question 12 Not yet answered Marked out of 4.00 Flag question The current yield to maturity on a government bond is 6 percent and the premium on the market portfolio is also 6 percent. An investment manager has $5,000 invested in a stock that has an estimated beta of 1.2, and another $15,000 invested in the stock of her own publicly traded firm. She calculates that the required rate of return on her total portfolio ($20,000) is 15 percent. What is the beta of her firm? Select one: 1.6 1.7 1.8 1.9 None of these answers Question 13 Not yet answered Marked out of 4.00 P Flag question The cost of capital on TKM Constructions is 15%. The firm has just paid an annual dividend of $0.40 (i.e. Do ), expects to grow future dividends at 24% for the next two years, and then 8% thereafter forever. What is the current estimated price of TKM's shares? Select one: $ 6.17 $ 6.97 $ 8.07 $ 8.91 $13.93 Question 12 Not yet answered Marked out of 4.00 Flag question The current yield to maturity on a government bond is 6 percent and the premium on the market portfolio is also 6 percent. An investment manager has $5,000 invested in a stock that has an estimated beta of 1.2, and another $15,000 invested in the stock of her own publicly traded firm. She calculates that the required rate of return on her total portfolio ($20,000) is 15 percent. What is the beta of her firm? Select one: 1.6 1.7 1.8 1.9 None of these answers Question 13 Not yet answered Marked out of 4.00 P Flag question The cost of capital on TKM Constructions is 15%. The firm has just paid an annual dividend of $0.40 (i.e. Do ), expects to grow future dividends at 24% for the next two years, and then 8% thereafter forever. What is the current estimated price of TKM's shares? Select one: $ 6.17 $ 6.97 $ 8.07 $ 8.91 $13.93
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To calculate the beta of the investment managers firm and the current estimated price of TKM Constructions shares we can use the following formulas an... View the full answer
Related Book For
Corporate Finance
ISBN: 9781265533199
13th International Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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