Page 1 of 1
Suppose that TechInc consists of a perpetual cash flow of S1SM USD that will arrive next year. Assume the risk free rate
Posted: Sun May 08, 2022 10:49 am
by answerhappygod
- Suppose That Techinc Consists Of A Perpetual Cash Flow Of S1sm Usd That Will Arrive Next Year Assume The Risk Free Rate 1 (38.86 KiB) Viewed 30 times
Suppose that TechInc consists of a perpetual cash flow of S1SM USD that will arrive next year. Assume the risk free rate is 2 percent. Apply the CAPM to calculate the local market value of TechInc. TechInc 1.00 Corr(RRD) Local 0.75 1.00 SD (%) 16 TechInc Local Market World World 0.70 0.85 1.00 E(R)%) ? 10 13 12 8 O $159.84 M O $150 M O $13.71 M