This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that you are considering investing in Xerox common stock. You have found that its beta is ... (Read 74 times)

nramada

  • Hero Member
  • *****
  • Posts: 580
on: Jul 11, 2018
Assume that you are considering investing in Xerox common stock. You have found that its beta is +1.2 and you think a market risk premium should be 8.
 
  If you could earn 12 on risk-free Treasury securities, Xerox has a required return of ________.
  A)
 
  24.0
  B)
 
  14.4
  C)
 
  21.6
  D)
 
  22.4

Question 2

Conglomicorp Inc has 10.5 million shares of stock outstanding with a book value of 25 per share and a market value of 93 per share. The firm also has 40 million in retained earnings and a required rate of return of 8.
 
  What is the current market capitalization for the firm?
  A) 904,166,667
  B) 976,500,000
  C) 1,097,820,000
  D) 1,016,500,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lkoler

  • Sr. Member
  • ****
  • Posts: 358
Reply #1 on: Jul 11, 2018
Answer to Question 1

C

Answer to Question 2

B
Explanation: B) MKT CAP = P  Q = 93  10.5m shares = 976,500,000.


nramada

  • Member
  • Posts: 580
Reply 2 on: Jul 11, 2018
Wow, this really help

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Rhytidoplasty. This is a common form of plastic surgery in which the skin is pulled and sutured to d Rhytidoplasty. This is a common form of plastic surgery in which the skin is pulled and sutured to d
Large families on U.S. farms used to be common. Children helped plant and harvest crops, take care ... Large families on U.S. farms used to be common. Children helped plant and harvest crops, take care ...
Selected Common Neurotransmitters Selected Common Neurotransmitters
An embedded particle of something was found on one of the gears, making this pump worthless except ... An embedded particle of something was found on one of the gears, making this pump worthless except ...
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ... Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ...
Common Methods of Contraception Common Methods of Contraception
Video: Polysaccharides

For a complete list of videos, visit our video library