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Expected return on siebling common stock

Problem: Siebling Manufacturing Company's common stock has a beta of .8. If the expected risk-free return is 7% and the market offers a premium of 8% over the risk-free rate, what is the expected return on Siebling's common stock?

a. 7.8%

b. 13.4%

c. 14.4%

d. 8.7%

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Finance Basics: Expected return on siebling common stock

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Expected return on siebling common stock

Reference No:- TGS01450917

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Expected return on siebling common stock

Reference No:- TGS01450917

Recent Questions Asked Finance Basics

Q : Cost of a gallon of heating oil

Q : General electric-relative performance analysis

Q : Compounded monthly on your investment

Q : Gift in an investment earning

Q : Expected return on siebling common stock

Q : Debenture agreement

Q : Senbet ventures-sales volume

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Q : Benefit of a short-term performance forecast

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