A stock has an expected return of 15 percent its beta is


1. A stock had returns of 5 percent, -8 percent, 2 percent, and 13 percent over the past 4 years. What is the standard deviation of this stock for the past four years?

8.7 percent
4.4 percent
3.0 percent
15.0 percent

2. Suppose a stock had an initial price of $56 per share, paid a dividend of $1.85 per share during the year, and had an ending share price of $63. Compute the percentage total return.

14.05

16.59

15.80

17.50

3. You purchased 340 shares of stock at a price of $54.57 per share. Over the last year, you have received total dividend income of $380. What is the dividend yield?

23.7 percent

1.1 percent

7.8 percent

2.0 percent

7.0 percent

4. Sixx AM Manufacturing has a target debt-equity ratio of 0.61. Its cost of equity is 17 percent, and its cost of debt is 9 percent. If the tax rate is 34 percent, what is the company's WACC?

12.81%

12.17%

10.25%

13.45%

10.13%

5. A stock has an expected return of 15 percent, its beta is 0.35, and the risk-free rate is 9 percent. What must the expected return on the market be?

17.14%

26.14%

27.45%

24.84%

27.19%

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Financial Management: A stock has an expected return of 15 percent its beta is
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