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Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of return
Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
A stock is expected to pay a dividend of 1 at the end of the year The required rate of return is rs 11 percent and the expected constant growth rate is 5 percent?
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?
How do you calculate risk - free return?
Risk free rate of return or risk free return is calculated as the return on government securities of the same maturity.
Thomas brothers is expected to pay a 0.50 per share dividend at the end of the year the dividend is expected to grow at a constant rate of 7 percent a year the required rate of return on the stock?
The rate of return on the stock is dependent on the public's appraisal of the current economic situation and of the company. However, on the long term it is dependent on the management's efforts.
How do you calculate a coefficient knowing the expected rate of return and standard deviation?
It depends on what the underlying distribution is and which coefficient you want to calculate.
How can you calculate internal rate of return on investment in real estat?
common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock common stock current price $90 is expected to pay a dividend of $10. Company growth rate is 11%. estimate the expected rate of return on corp stock
How is expected rate of return calculated from average rate of return on investment and standard deviation?
The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.
Does the capital asset pricing model help us to get required rate of return or expected rate of return?
expected rate of return
What is the expected rate of return for Industries that has a beta of 0.71 when the risk free rate is 0.09 and the market rate of return is expected to be 0.13?
11.84%
Increase in expected growth rate does what to required return rate?
An increase in a firm's expected growth rate would normally cause its required rate of return to
Risk free rate is 5 and the market risk premium is 6 What is the expected return for the overall stock market What is the required rate of return on a stock that has a beta of 1.2?
Expected return= risk free rate + Risk premium = 11 rate of return on stock= Riskfree rate + beta x( expected market return- risk free rate)
How do you calculate unadjusted rate of return with depreciation?
To calculate unadjusted rate of return with depreciation: Subtract depreciation cost from the expected cash flows along with expenses, then multiply the result by the income tax rate and subtract. Calculate average investment 10,000/2 Example: Machine Investment $10,000 4 year life , Expected cash flows 8,000 expenses 2,200 tax rate 20% (8,000-2,500-2.200) x (1 -.20) = 2,640/5,000 = 52.80%
Difference between marginal efficiency of investment and marginal efficicency of capital?
MEC is the expected rate of return on capital and MEI is the expected rate of return on investment.
How do you calculate expected fill rate?
Capacity of container divided by rate of flow
The market risk premium is measured by?
The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.
A stock is expected to pay a dividend of 1 at the end of the year The required rate of return is rs 11 percent and the expected constant growth rate is 5 percent?
A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?
