Question: 13) What is the expected return (simple average) if stock returns followed this historical distribution: +15%, -10%, -25%, and +15%? 14) What is the SAMPLE

13) What is the expected return (simple average) if stock returns followed this historical distribution: +15%, -10%, -25%, and +15%? 14) What is the SAMPLE standard deviation if stock returns followed this historical distribution: +15%, - 10%, -25%, and +15%? 15) What methods can we use to estimate the equity premium in CAPM? 16) Pearson Motors has a target capital structure of 50% debt and 50% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 9%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 8%. What is Pearson's cost of common equity
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
