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提问人：网友hbcblsw 发布时间：2022-01-07

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A stock has a beta of 0.What does this mean？______.A．The stock will fall on average by hal

A stock has a beta of 0.What does this mean？______.

A．The stock will fall on average by half as much as the market.

B．The stock will fall and rise by twice as much as the market.

C．Every time there is a price movement, the stock will rise or fall by half as much as the market.

D．The stock price change will on average be half as much as the market price change.

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更多“A stock has a beta of 0.What does this mean？______.A．The stock will fall on average by hal”相关的问题

第1题

Suppose the JumpStart Corporation's common stock has a beta of 0.8. If the risk-free rate is 4% and the expected market return is 9%, the expected return for JumpStart's common is

A.3.2%

B.4.0%

C.7.2%

D.8%

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第2题

For the year just ended，N company had an earnings of$2 per share and paid a dividend of

$1．2 0n its Stock．The growth rate in net income and dividend are both expected to be a constant 7 percent per year,indefinitely．N company has a Beta of 0．8，the risk-free interest rate is 6 percent，and the market risk premium is 8 percent．

P Company is very similar to N company in growth rate，risk and dividend payout rati0．It had 20 million shares outstanding and an earnings of$36 million for the year just ended．

The earnings will increase to$38．5 million the next year．

Requirement：

A．Calculate the expected rate of return on N company’S equity．

B．Calculate N Company’S current price—eaming ratio and prospective price-earning rati0．

C．Using N company’S current price-earning rati0，value P company’S stock price．

D．Using N company’S prospective price-earning rati0，value P company’S stock price．

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第3题

The equity beta of Fence Co is 0·9 and the company has issued 10 million ordinary shares.

The market value of each ordinary share is $7·50. The company is also financed by 7% bonds with a nominal value of $100 per bond, which will be redeemed in seven years’ time at nominal value. The bonds have a total nominal value of $14 million. Interest on the bonds has just been paid and the current market value of each bond is $107·14.

Fence Co plans to invest in a project which is different to its existing business operations and has identified a company in the same business area as the project, Hex Co. The equity beta of Hex Co is 1·2 and the company has an equity market value of $54 million. The market value of the debt of Hex Co is $12 million.

The risk-free rate of return is 4% per year and the average return on the stock market is 11% per year. Both companies pay corporation tax at a rate of 20% per year.

Required:

(a) Calculate the current weighted average cost of capital of Fence Co. (7 marks)

(b) Calculate a cost of equity which could be used in appraising the new project. (4 marks)

(c) Explain the difference between systematic and unsystematic risk in relation to portfolio theory and the capital asset pricing model. (6 marks)

(d) Discuss the differences between weak form, semi-strong form. and strong form. capital market efficiency, and discuss the significance of the efficient market hypothesis (EMH) for the financial manager. (8 marks)

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第4题

At present, the riskless rate of return is 5% and the expected rate of return on the marke

t portfolio is 11%. The expected return for a common stock is 20% and the stock’s beta is 1.2. This particular common stock is

A、fairly valued

B、undervalued

C、overvalued

D、cannot tell

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第5题

The risk-free rate is 5%, risk premium on the market portfolio is 10%, and the beta of Betaful’s stock is 1.2. According to CAPM, the equilibrium expected rate of return on its stock should be （).

A.11%

B.6%

C.12%

D.17%

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第6题

At present, the riskless rate of return is 5% and the expected rate of return on the marke

t portfolio is 11%. The expected return for a common stock is 20% and the stock’s beta is 1.2. This particular common stock is: (B )

A、fairly valued

B、undervalued

C、overvalued

D、cannot tell

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第7题

Given the following estimated financial results, value the stock of FishnChips, InA., usin

Given the following estimated financial results, value the stock of FishnChips, In

A., using the infinite period dividend discount model (DDM).

· Sales of $1,000,000.

· Earnings of $150,000.

· Total assets of $800,000.

· Equity of $400,000.

· Dividend payout ratio of 60.0%.

· Average shares outstanding of 75,000.

· Real risk free interest rate of 4.0%.

· Expected inflation rate of 3.0%.

· Expected market return of 13.0%.

· Stock Beta at 2.1.

The per share value of FishnChips stock is approximately: (Note: Carry calculations out to at least 3 decimal places.)

B.Unable to calculate stock value because ke

D.$17.91.

E.$26.86.

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第8题

The Jelly Bean Corporation （JBC) has instructed yo...

The Jelly Bean Corporation (JBC) has instructed you to estimate its weighted average cost of capital (WACC). You will adapt the worksheet L7Q1 in the file I-FN1L7Q1. You are given the following data: JBC has a corporate tax rate of 35%. New debt in the form of 15-year bonds could be sold at par to yield 8% paid annually (the yield to maturity on the existing debt) with each €1,000 bond incurring before-tax underwriting expenses of €45. New preference shares can be sold at par to provide a dividend yield of 9% with before-tax issuing and underwriting expenses amounting to 7% of par value. Ordinary shares can be sold to an underwriting syndicate at €12.60 per share, which represents a 10% discount from the current market price. Before-tax issuing and underwriting expenses would be 6.5% of the issue price. Current earnings per share are €1.54, and the stock just paid a dividend of €0.72 per share. Analysts agree that both earnings and dividends will grow at a rate of 6% in the foreseeable future. In addition, the current risk-free rate of return is 4%, the historical market price of risk is 7%, and the beta of JBC ordinary shares is 1.05. JBC must issue new ordinary equity to meet this year's capital expenditure requirements. Jelly Bean Corp. has the following balance sheet figures: Long-term bonds 9% coupon, 15-year maturity € 35,000,000 Preference shares 1,000,000 shares outstanding, €15 par value, 10% dividend 15,000,000 Ordinary shares 4,000,000 shares outstanding 20,000,000 Retained earnings 30,000,000 Required a. What is the after-tax cost (in %) and market value of JBC's long-term debt？ b. What is the after-tax cost (in %) and market value of JBC's preference shares？ c. What is the after-tax cost (in %) and market value of JBC's ordinary equity, using the CAPM？ d. Based on the CAPM estimate of the cost of ordinary equity, what is JBC's WACC？

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第9题

A portfolio contains two assets. The first asset comprises 40% of the portfolio and has a beta of 1.2. The other asset has a beta of 1.5. The portfolio beta is 1.35.

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第10题

Preferred stock usually has voting rights.

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