Bill asks you to undertake securities valuation on Initech's stock, since he's looking forward to cashing in
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Question:
Bill asks you to undertake securities valuation on Initech's stock, since he's looking forward to cashing in on his stock options. You find that Initech currently has a beta coefficient of 3.5, that the risk-free rate (the yield on T-bonds) is 3 percent, and that the market risk premium would be 5 percent. What would be the required rate of return on Initech’s stock?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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