The common stock of Jensen Shipping has an expected return of 18.00 percent. The market risk-premium is

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

Question:

The common stock of Jensen Shipping has an expected return of 18.00 percent. The market risk-premium is 10.00 percent and the risk-free return is 3.00 percent. What is the beta of this stock?

Related Book For answer-question

Financial reporting, financial statement analysis and valuation a strategic perspective

ISBN: 978-0324789416

7th Edition

Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw

See More Books

Posted Date: Sep 04, 2023 01:27 AM

See More Questions

Oct. 31. Declared semiannual dividends of $1.30 per share on the preferred stock and $0.07 per share on the common stock (before the stock dividend). In addition, a 1% common stock dividend was...
Assume that you recently graduated and landed a job as a financial planner with Cicero Services, an investment advisory company. Your first client recently inherited some assets and has asked you to...
The Coca-Cola Company is a global soft-drink beverage company that is a direct competitor with Starbucks. The data in Chapter 12, Exhibits 12.14 through 12.16 (pages 806-809), include the actual...
Identify an accurate sentence about parenting in the United States. a. Fathers of toddlers play more roughly with daughters than with sons. b. During the first year, fathers treat boys and girls as...
Describe spinning and laddering in the IPO market. How do you think these actions influence the price of a newly issued stock? Who is adversely affected as a result of these actions?
Reactions of hydrocarbons are often studied in the petroleum industry. One example is 2 C 3 H 8 (g) C 6 H 6 () + 5 H 2 (g), with H = 698 kJ. If 35 L of propane at 258C and 0.97 atm is to be reacted,...
A firm buys a fixed asset for 10,000. The firm estimates that the asset will be used for 5 years. After exactly 24 years, however, the asset is suddenly sold for 5,000. The firm always provides a...
Selected account balances for Hulse Company at January 1, 2014, are presented below. Accounts Payable ........ $14,000 Accounts Receivable ....... 22,000 Cash ............... 17,000 Inventory...
Please explain each step. 2) Apex Philippines produces and sells medical imaging devices (sales=300 units). Each device costs P40,000 to produce in the Philippines; and sells for $1,000 in the U.S....
Identify some differences between business organizations and government/not-for-profit organizations.
(1 point) A farmer builds a rectangular grid of pens with 1 row and 8 columns using 300 feet of fencing. What dimensions will maximize the total area of the pen? The total width of each row of the...
A component has a reliability of 98% and is backed up by a redundant component with the same probability. What is their combined reliability?
For an undamped system, when is the response out of phase with the excitation?
A chance event can result in three future states of nature, the first two states having a probability of 20% each. What is the probability of the third future state of nature?
Why doesn't the amplitude grow unbounded when the frequency of excitation coincides with the natural frequency for systems with viscous damping?
A horizontal metal strip $1.0 \mathrm{~mm}$ thick and $10 \mathrm{~mm}$ wide carries a 12-A current along its length, and both the length and the width are perpendicular to a uniform magnetic...
You hear on the news that the S&P 500 was down 2.9% today relative to the risk-free rate (the market's excess return was -2.9%). You are thinking about your portfolio and your investments in Zynga...
Draw and label the E and Z isomers for each of the following compounds: 1. CH3CH2CH==CHCH3 2. 3. 4. CH,CH2C CHCH2CH Cl CH3CH2CH2CH2 CH CH2CCCH2CI CHCH3 CH3 HOCH CH CCC CH O-CH C(CH
When a firm incurs costs on an item to be used in operations, management must decide whether to treat the cost as an asset or an expense. Assume that a company used cash to acquire machinery expected...
Altmans bankruptcy risk model utilizes the values of the variables at a particular point in time (balance sheet variables) or for a period of time (income statement values). For the most part,...
The following data represent total assets, book value, and market value of common shareholders equity (dollar amounts in millions) for three firms. Each of these firms, Southwest Airlines, Kroger,...
In the 2006 Wells Report, what was the third most common way of detecting fraud? a. Tips b. Internal audits c. External audits d. By accident e. Reports from the police
What would not be a type of prediction for purposes of a CFE? a. Anonymous tip b. Complaint c. Audit inquiry d. Conflict of interest e. None of the above
What was the major fraud scheme used by the Baptist Foundation of Arizona? a. Ponzi scheme b. Created many fake purchase orders c. Improperly capitalized a number of expenses d. Bill and hold...

The common stock of Jensen Shipping has an expected return of 18.00 percent. The market risk-premium is

Question:

Expert Answer:

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

Financial reporting, financial statement analysis and valuation a strategic perspective

Students also viewed these finance questions