• 2022-06-06
    Given Gitech's beta of 1.55 and a risk free rate of 8 percent, what is the expected rate of return assuming a 14 percent market return?
    A: 12.4%
    B: 14.3%
    C: 17.3%
    D: 20.4%
  • C
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    • 0

      If the nominal interest rate per year is 10 percent and the inflation rate is 4 percent, what is the real rate of interest? A: 10.0 percent B: 4.1 percent C: 5.8 percent D: 14.0 percent

    • 1

      A preferred stock pays an annual dividend of $3.20. What is one share of this stock worth today if the rate of return is 11.75 percent?

    • 2

      A firm is expected to pay a dividend of $1.00 next year and the dividend is expected to grow at a constant rate of 4 percent over time. Some investors have required returns on investments in equity of 12 percent, some 10 percent, and some 8 percent. The market price of this firm’s stock will be slightly above _________.

    • 3

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    • 4

      The duration of a ten - year, 10 percent coupon bond when the interest rate is 10 percent is 6.76 years. What happens to the price of the bond if the interest rate falls to 8 percent?