The beta of an MNC acquisition target is 1.38 and last year's S&P 500 return was at 14.92%, while for dedicated savers, T-Bills languished at a very dismal 2.21%. With this information, what is the Required Rate of Return for the MNC if they were to acquire this direct foreign investment? ke = Rf+B (Rm-Rf) Where ke = required return on stock Rf = risk-free rate of return Rm = market return B = beta of stock
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The beta of an MNC acquisition target is 1.38 and last year's S&P 500 return was at 14.92%, while for dedicated savers, T-Bills languished ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. Ordering a shipment of modems costs about $500 in processing.
Answers (2)
True or false when customers see few differences among competing products, they will usually look for the most well-known brand
Answers (1)
Mullineaux Corporation has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt. Its cost of equity is 12 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 5 percent.
Answers (1)
Julie, a single taxpayer, has completed her 2019 Schedule C and her net loss is $40,000. Her only other income is wages of $30,000. Julie takes the standard deduction of $12,200 in 2019. a. Calculate Julie's taxable income or loss. $ b.
Answers (1)
The money supply equals Group of answer choices a. monetary base plus money multiplier. b. monetary base divided by money multiplier. c. money multiplier divided by monetary base. d. money multiplier multiplied by monetary base.
Answers (1)
New Questions in Business
Which of the following statements is true about using fonts in business documents? A. Sans serif fonts, such as Arial, are best in business letters and emails. B. Use as many different types of fonts in a business letter as you can. C.
Answers (1)
In creating the Wii, how did Nintendo ensure a supply of complements that would motivate customers to adopt its new video game format? a. Nintendo made only a select number of games to run exclusively on the Wii system. b.
Answers (1)
Suppose that B2B, Inc., has a capital structure of 35 percent equity, 16 percent preferred stock, and 49 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 14.5 percent, 11.0 percent, and 9.
Answers (1)
C. explain the court's guidelines for deciding discrimination cases.
Answers (1)
Changing workplace procedures tends to be counterproductive
Answers (1)