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Author Question: A common stock currently has a beta of 1.3, the risk-free rate is an annual rate of 6 percent, and ... (Read 83 times)

krzymel

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  • Posts: 548
on: Apr 25, 2021

Question 1

________ stocks are stocks for which the stock price is low compared to earnings or to the accounting value of the firm's assets.
◦ Value
◦ Growth
◦ Technical
◦ High dividend yield
◦ Fundamental

Question 2

A common stock currently has a beta of 1.3, the risk-free rate is an annual rate of 6 percent, and the market return is an annual rate of 12 percent. The stock is expected to generate per-share benefits of $5.20 during the coming period. A toxic spill results in a lawsuit and potential fines, and the beta of the stock jumps to 1.6. Assuming zero growth, the new equilibrium price of the stock
◦ will be $37.68.
◦ will be $43.33.
◦ will be $33.33.
◦ cannot be determined from the information given.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by krzymel on Apr 25, 2021

emilymalinowski12

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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krzymel

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

debra928

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Reply 3 on: Yesterday
Gracias!

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