Expected return of hold-n-trade, Finance Basics

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Expected return of hold-n-trade

Problem:

The Hold-n-Trade Co. is an all-equity financed firm. The beta is .9, the market risk premium is 7% and the risk-free rate is 5%. What is the expected return of Hold-n-Trade?

A. 8%

B. 8.5%

C. 9%

D. 11.3%

E. 12%

Please provide all workings and formulas and also provide step by step solution.

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Finance Basics: Expected return of hold-n-trade

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Recent Questions Asked Finance Basics

Q : Revised expected return on the stock

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Finance Basics: Expected return of hold-n-trade

Reference No:- TGS0876607

Recent Questions Asked Finance Basics

Q : Revised expected return on the stock

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Q : Dybvig cost of equity capital

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