A share of Unicorn common stock is trading at $22.00 per share. It has a book value of $16.00 per share and generates earnings per share of $1.20. It has a beta of 1.2, the risk-free rate of return as determined by the 10-year US Treasury bond yield is 2% percent, and the market generates a rate of return of 10 percent. What is the expected rate of return on this asset?

Answer rating: 100% (QA)

The expected rate of return on the Unicorn common stock is approximately 3887 This can ... View the full answer