he treasurer at Dell estimated the expected return on equity for the firm is 14.79%. The current

Fantastic news! We've Found the answer you've been seeking!

Question:

he treasurer at Dell estimated the expected return on equity for the firm is 14.79%. The current T-bill rate is 5.90%, the expected market return is 16.61% and the market premium is 10.71%. What is the stock's beta?

Related Book For answer-question

Entrepreneurial Finance

ISBN: 978-1305968356

6th edition

Authors: J. Chris Leach, Ronald W. Melicher

See More Books

Posted Date: Apr 20, 2024 05:15 AM

See More Questions

The beta of Tasty Foods stock of 1.10 used by Rae in computing the required return on equity was based on monthly returns for the past 10 years. If Rae uses daily returns for the past 5 years, the...
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
During the 2015-16 period, Larry Energeria Ltd acquired a patent for heating glazing unit, as well as incurring expenses in relation to the development of a new power generation brick that it expects...
A metallic block (specific heat 500 J/kg K) of 100 kg mass having a temperature of 360 K is immersed in an insulated tank containing 40 kg of water at 300 K. Find the change in entropy of the...
A clinical psychologist is studying whether scheduling clients for appointments prior to their workday or after their workday results in a better rate of showing up for their appointments. He...
Do the graphs of the function have any horizontal tangents in the interval 0 x 2? If so, where? If not, why not? Visualize your findings by graphing the functions with a grapher. y = x + sin x
A rotary plug valve needs to be replaced to repair a machine, and the probabilities that the replacement will be a flange style (low pressure), flange style (high pressure), wafer style, or lug style...
1. Did the Montrose Chemical Corporation violate any ethical standards in manufacturing and selling DDT to the public? 2: What should it have done differently? 3: Was it ethical to manufacture and...
What strategies can be employed to enhance visibility and traceability across global supply chains, ensuring compliance with stringent regulatory frameworks and mitigating risks associated with...
What are the advantages to overspending with credit? Explain.
Why is the fact that a hospital operates an emergency room open to all persons regardless of ability to pay is a significant factor the IRS considers when determining if the hospital provides a...
Franklin on vacation for several weeks. While Franklin was away his neighbour, Samantha, decided to weed and maintain his large vegetable and flower gardens, as well as cut the grass in his large...
When are harassing behaviors unwelcome? What is the liability to organizations for harassment?
You have a friend who knows that you are studying Psychology in university. In a conversation you mention that you are doing a course on the History and Philosophy of Psychology. The friend tells you...
During 2 0 2 3 , Manfred, who is 6 0 years old and unmarried, provided all of the support of his elderly mother. His mother was a resident of a home for the aged for the entire year and had no...
Write a memo regarding the following scenario. the president of your company, sandra m. ross, has received a variety of complaints about her fast food restaurant. She has asked you to inspect one of...
You have just begun your summer internship at Omni Instruments. The company supplies sterilized surgical instruments for physicians. To expand sales, Omni is considering paying a commission to its...
Wallace and Hussain type estimators for the variance components of a one-way unbalanced panel data model. (a) Verify the \(E\left(\widehat{q}_{1} ight)\) and \(E\left(\widehat{q}_{2} ight)\)...
Using the Monte Carlo setup for the unbalanced one-way error component model considered by Baltagi and Chang (1994), compare the various estimators of the variance components and the regression...
Using the Harrison and Rubinfeld (1978) data published in Belsley, Kuh and Welsch (1980) and provided on the Springer website as Hedonic.xls, reproduce Table 9.1. Perform the Hausman test based on...

he treasurer at Dell estimated the expected return on equity for the firm is 14.79%. The current

Question:

Expert Answer:

The beta of a stock can be calculated using the Capital Asset Pricing Model CAPM The CAPM ... View the full answer

Entrepreneurial Finance

Students also viewed these finance questions