Henessey Markets has a growth rate of 4.8 percent and is equally as risky as the market.The stock is currently selling for $17 a share.The overall stock market has a 10.6 percent rate of return and a risk premium of 8.7 percent.What is the expected rate of return on this stock?
A) 8.7 percent
B) 9.2 percent
C) 10.6 percent
D) 11.3 percent
E) 11.7 percent
Correct Answer:
Verified
Q47: Sweet Treats common stock is currently priced
Q48: Southern Home Cookin' just paid its annual
Q49: Mangrove Fruit Farms has a $250,000 bond
Q50: National Home Rentals has a beta of
Q51: Samuelson Plastics has 7.5 percent preferred stock
Q53: Handy Man,Inc.has zero coupon bonds outstanding that
Q54: New York Deli has 7 percent preferred
Q55: Tidewater Fishing has a current beta of
Q56: Simple Foods has a zero coupon bond
Q57: The Corner Bakery has a bond issue
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents