1- There are a number of approaches may be used to estimate the market risk premium....

1- There are a number of approaches may be used to estimate the market risk premium. Identify three of them and discuss/justify them in detailed

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jeff jeffy answered 9 months ago

1. The risk free rate is 2%, the risk premium for the market is 5%, and...

1. The risk free rate is 2%, the risk premium for the market is 5%, and a stock has an expected return of 10.5%. What is the firm’s beta? 2. A firm has a beta of 1.3 and the risk premium for the market is 6%. If the firms expected return is 11%, what is the risk free rate? 3. A firm with a beta of 1.5 has a market return of 15% when the risk free rate is 3%...

Explain how you estimate the risk-free rate, market risk premium (in CAPM), and dividend growth rates...

Explain how you estimate the risk-free rate, market risk premium (in CAPM), and dividend growth rates (in stock valuation model).

1. What alternative approaches can be used to estimate variable consideration?

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required: Determine the specific citation for accounting for each of the following items:1. What alternative approaches can be used to estimate variable consideration?2. What alternative approaches can be used to estimate the stand-alone selling price of performance obligations that are not sold separately?3. What determines the timing of revenue recognition with respect to licenses of symbolic intellectual property?4. What indicators suggest that a seller is a principal rather than anagent?

1. The risk-free rate is 1.86% and the market risk premium is 9.85%. A stock with...

1. The risk-free rate is 1.86% and the market risk premium is 9.85%. A stock with a β of 1.71 just paid a dividend of $2.79. The dividend is expected to grow at 24.28% for three years and then grow at 4.36% forever. What is the value of the stock? 2. The risk-free rate is 2.20% and the market risk premium is 6.49%. A stock with a β of 1.27 just paid a dividend of $2.31. The dividend is expected...

1. (A) The risk-free rate is 2.91% and the market risk premium is 5.39%. A stock...

1. (A) The risk-free rate is 2.91% and the market risk premium is 5.39%. A stock with a β of 1.48 will have an expected return of ____%. (B) The risk-free rate is 2.05% and the expected return on the market 7.67%. A stock with a β of 1.57 will have an expected return of ____%. (C) A stock has an expected return of 14.00%. The risk-free rate is 3.12% and the market risk premium is 7.68%. What is the...

What are the differences among the Market return, the Market risk premium, the Market risk price,...

What are the differences among the Market return, the Market risk premium, the Market risk price, and the return on an individual asset or a portfolio of assets versus the asset’s or portfolio’s risk premium?

1. Suppose the risk-free rate is 2.64% and an analyst assumes a market risk premium of...

1. Suppose the risk-free rate is 2.64% and an analyst assumes a market risk premium of 6.89%. Firm A just paid a dividend of $1.25 per share. The analyst estimates the β of Firm A to be 1.41 and estimates the dividend growth rate to be 4.64% forever. Firm A has 276.00 million shares outstanding. Firm B just paid a dividend of $1.53 per share. The analyst estimates the β of Firm B to be 0.85 and believes that dividends...

1. If the risk-free rate is 6.9%, the market risk premium is 7.0%, and the expected return...

1. If the risk-free rate is 6.9%, the market risk premium is 7.0%, and the expected return on Security J is 29.4%, what is the beta for Security J? (Calculate your answer to two decimal places.) Title: Preferred stock (solve for value) 2. Timeless Corporation issued preferred stock with a par value of $700. The stock promised to pay an annual dividend equal to 19.0% of the par value. If the appropriate discount rate for this stock is 10.0%, what is the...

1. A) Suppose the risk-free rate is 3.00% and an analyst assumes a market risk premium...

1. A) Suppose the risk-free rate is 3.00% and an analyst assumes a market risk premium of 7.64%. Firm A just paid a dividend of $1.03 per share. The analyst estimates the β of Firm A to be 1.33 and estimates the dividend growth rate to be 4.74% forever. Firm A has 262.00 million shares outstanding. Firm B just paid a dividend of $1.61 per share. The analyst estimates the β of Firm B to be 0.87 and believes that...

You want to estimate the country risk premium (over and above the base equity premium) to...

You want to estimate the country risk premium (over and above the base equity premium) to charge for a company listed in Indonesia, and have been supplied with the following information:  ndonesia is rated BB by S&P, and the corporate bond spread over the treasury bond rate for BB rated bonds is 3.0%.  The standard deviation in Indonesian equity prices over the last year has been 84%, while the standard deviation in Indonesian government bond prices has been...

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