In: Finance
Your investment club has only two stocks in its portfolio. $30,000 is invested in a stock with a beta of 0.4, and $60,000 is invested in a stock with a beta of 2.2. What is the portfolio's beta? Round your answer to two decimal places.
AA Corporation’s stock has a beta of 1.3. The risk-free rate is 7% and the expected return on the market is 11%. What is the required rate of return on AA's stock? Round your answer to two decimal places.
Cost of Preferred Stock with Flotation Costs
Burnwood Tech plans to issue some $60 par preferred stock with a 7% dividend. A similar stock is selling on the market for $66. Burnwood must pay flotation costs of 7% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.