Brodkey Shoes has a beta of 1.30, the Treasury bond rate is 3.00%, and the Treasury bond
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Brodkey Shoes has a beta of 1.30, the Treasury bond rate is 3.00%, and the Treasury bond rate is 6.5%. The annual return of the stock market for the past 3 years was 15.00%, but investors expect the future annual return of the stock market to be 13.00%. Based on the SML, what is the required performance of the company?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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