Booher Book Stores has a beta of 0.9. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 7%. The market risk premium is 6.5%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places.

A stock is expected to pay a dividend of $1.99 at the end of the year. The required rate of return is rs = 13.82%, and the expected constant growth rate is g = 8.0%. What is the stock's current price?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. A. $39.61 B. $29.71 C. $34.14 D. $42.68 E. $35.51

A company's 5-year bonds are yielding 10% per year. Treasury bonds with the same maturity are yielding 5.8% per year, and the real risk-free rate (r*) is 2.85%. The average inflation premium is 2.55%, and the maturity risk premium is estimated to be 0.1 × (t - 1)%, where t = number of years to maturity. If the liquidity premium is 0.4%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places.

Jersey Jewel Mining has a beta coefficient of 1.5. Currently the risk-free rate is 4 percent and the anticipated return on the market is 6 percent. JJM pays a $5.00 dividend that is growing at 3 percent annually. Do not round intermediate calculations.   What is the required return for JJM? Round your answer to two decimal places.     %   Given the required return, what is the value of the stock? Round your answer to the nearest cent.   $     If the stock is selling for $159, what should you do?   The stock  overvalued and  be purchased.   If the beta coefficient declines to 1.2, what is the new value of the stock? Round your answer to the nearest cent.   $     If the price remains $159, what course of action should you take given the valuation in d?   The stock is  and  be purchased.

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4% rate of inflation in the future. The real risk-free rate is 2.0%, and the market risk premium is 6.0%. Mudd has a beta of 1.5, and its realized rate of return has averaged 9.0% over the past 5 years. Round your answer to two decimal places.

Treasury bill rates are 1.3​%. The expected return of the market is 5.9​%. If Waltham Corporation has a beta that is 25​% higher than the​ market, what return should investors expect from Waltham Corporation stock to two decimal​ places?

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4% rate of inflation in the future. The real risk - free rate is 2.0%, and the market risk premium is 8.0%. Mudd has a beta of 1.7, and its realized rate of return has averaged 15.0% over the past 5 years. Round your answer to two decimal places.

Jersey Jewel Mining has a beta coefficient of 1.3. Currently the risk-free rate is 2 percent and the anticipated return on the market is 8 percent. JJM pays a $5.30 dividend that is growing at 6 percent annually. Do not round intermediate calculations.   What is the required return for JJM? Round your answer to two decimal places.     %   Given the required return, what is the value of the stock? Round your answer to the nearest cent.   $     If the stock is selling for $166, what should you do?   The stock -Select-isis notItem 3 overvalued and -Select-shouldshould notItem 4 be purchased.   If the beta coefficient declines to 1.2, what is the new value of the stock? Round your answer to the nearest cent.   $     If the price remains $166, what course of action should you take given the valuation in d?   The stock is -Select-overvaluedundervaluedItem 6 and -Select-shouldshould notItem 7 be purchased.

a) If the dividend yield is 1.40% annualized, the interest rate is -0.10% annualized, and the index is trading at 28, 144 today, what is the expected price of a 6-month forward? 28, 144e(-0.001 -0.0140)*0.50 = 27,961.66 b ) The 6-month forward is currently quoted at 28,000. Using the information above and the grid below, show how you would arbitrage this index profitably. Be sure to indicate whether each transaction is long or short ( buy or sell) and to include (+) and (-) signs on your cash flows. Use 0 decimals (whole numbers only) in your answers. Transaction Time 0 cash flows Time t cash flows Totals:

Given the following: the Prime is 8.1 %, the FED funds rate is 6.9%, 90 day T-Bills are yielding 5.2%, the average return on all stocks traded on the NYSE is 11.7%, what would be the nominal rate of return?