What is the required return on a stock which has a beta of 1.2 if the risk-free rate is 2% and the return on the market

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answerhappygod
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What is the required return on a stock which has a beta of 1.2 if the risk-free rate is 2% and the return on the market

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What is the required return on a stock which has a beta of 1.2
if the risk-free rate is 2% and the return on the market portfolio
is 7%?
Ensure that all figures used are rounded to no less than 3
decimal places. Please do not enter any special characters in your
answer other than, if applicable, a decimal point (e.g. no £ or ,
symbols).
Please provide your answer in decimals, e.g. an answer of 6.2%
should be entered as 0.062.
Numerical response: ____
Which of the following is most likely to lead to REDUCED
shareholder wealth?
Announcement of a higher than expected dividend.
A decision to invest in a positive NPV project.
A decrease in the weighted-average cost of capital.
Adjusting leverage away from the optimal capital structure.
A firm’s common stock is valued at £60 millions and has a beta
of 1.5. The firm’s (risk-free) debt is valued at £100 millions and
has a beta of zero. The risk-free rate is 4% and the return on the
market portfolio is 10%. Ignore taxes. What is the firm’s
weighted-average cost of capital?
Ensure that all figures used are rounded to no less than 3
decimal places. Please do not enter any special characters in your
answer other than, if applicable, a decimal point (e.g. no £ or,
symbols).
Please provide your answer in decimals, e.g. an answer of 6.2%
should be entered as 0.062.
Numerical response: ____
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