Question: show work please Krenshow Inc. common stock has a reported beta of 1.4. The expected return on the market portfolio is 8.97% and the current

show work please

Krenshow Inc. common stock has a reported beta of 1.4. The expected return on the market portfolio is 8.97% and the current risk-free rate of return is 2.14%. Based on the CAPM, what is the required rate of return on the company's common stock? Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00%)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The marketing manager of a large super market chain has the business objective of using shelf space most efficiently. Toward that goal, she would like to use shelf space to predict the sales of a...

10 points Save Ant Kanshow inc. common stock has a reported bota of 24 The expected return on the market portfolio is 8.06% and the current risk-free rate of rotum 80%. Based on the CAPM, what is the...

answer questions 3,4, and 5 please. 1) Assume Merck (MRK) just finished paying an annual dividend of $1.80. You look up their beta and it equals 0.39, implying it's much less risky than the market...

please show work 3) Eagle Enterprises has common stock with a beta of 1.25. The expected return of the market is 10 percent and the risk-free rate is 2 percent. What is the expected return on this...

Need Answers asap, step by step please Tesla, Inc. common stock has a beta of 2.08. If the expected risk-free return is 1.5% and the expected market return is 14%, what is the expected return on...

please give detailed working i. has issued 10% preferred share which sold for $100 per share par value. The cost of issuing and selling the stock was $2 per share. ii. has common share with a market...

7 stock please show work You are considering a stock that has a beta of 2.0. The required return on the stock is 16 percent The return on an average stock is 11.5% What is the current risk-free rate...

Here is the question Question 3 1 pts Lewis & Associates stock has an expected return of 10.2 percent, the risk-free rate is 4.5 percent, and the market risk-premium is 7.5 percent. What must be the...

A financial analyst tells you that investing in stocks will allow you to double your money of $1,000 in 5 years. What annual rate of return is the analyst assuming you can earn? 10.41% 9.87\% 8.76\%...

Need help with the attached problem set 1. (10 points) Calculate the price of a stock that has a one-period horizon, is expected to pay a dividend of $.20 per share for the period, with the following...

Please do 1G and show work thank u a. 1. Assume the risk-free rate is 4% (re=4%), the expected return on the market portfolio is 12% (E[rm] = 12%) and the standard deviation of the return on the...

A part is demanded at the rate of 400 per week. The part is purchased from a supplier in Asia, and the lead time is five weeks. The standard deviation of demand during the lead time is 50 units. If...

How do effective leaders from marginalized populations influence and change the organizational structure in which they lead? What techniques do they utilize and how did their background influence...

Which of the following describes "Fortress Europe" best? result in increased power over member countries. EU that non - member countries may increase trade restrictions. and barriers to EU member...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".