Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%. Then an increase in investor risk aversion caused the market risk premium to rise by 2%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return? (Hint: First calculate the beta, then find the required return.) 14.38% 14.74% 15.11% 15.49% 15.87%
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The ratio of purchased material and services costs compared to total costs or total income has a major influence on: Multiple Choice:a. the nature of the products or services acquired. b. the size of the supply base. c.
Answers (2)
During the hiring process for a customer relationship manager at Jocylles, a toy manufacturer, the applicants were given role-playing exercises in which they were asked to interact directly with a trained role player.
Answers (1)
Ricardian equivalence means that: O changes in private savings offset any changes in the government deficit. O changes in exports offset any changes in the government deficit. O changes in imports offset any changes in the government deficit.
Answers (1)
Southwest U's campus book store sells course packs for $18 each, the variable cost per pack is $8, fixed costs to produce the packs are $200,000, and expected annual sales are 51,000 packs.
Answers (1)
According to a 2015 U. S. Census Bureau report, what percentage of the U. S. population lives in poverty (defined as less than $24,300 per year for a family of four) ?
Answers (1)
New Questions in Business
Sarah has recently started a restaurant in a commercial area where there are many other established restaurants and popular fast food chains.
Answers (1)
The market price of a security is $43. Its expected rate of return is 20%. The risk-free rate is 3% and the market risk premium is 7.8%.
Answers (1)
Select the correct answer from the drop-down menu. Which type of college credit program does the statement describe?
Answers (1)
Anderson's Furniture Outlet has an unlevered cost of capital of 8%, a tax rate of 35%, and expected earnings before interest and taxes of $1,500. The company has $3,500 in bonds outstanding that have a 5% coupon and pay interest annually.
Answers (1)
A residential zoning category requires at least 7,500 square feet per lot. The developer is reserving 30% of the land to streets, sidewalks, a park, and a community center. The tract of land for development consists of 120 acres.
Answers (1)