A stock is trading for 13, and just paid a dividend of 0.5 which is expected to grow at a fraction 0.03 per year. If Goldman Sacs charges a fraction 0.18 as a flotation cost, what is the required rate of return on a new stock issue??
Menger Corporation has a 0.0 probability of a return of 0.09, a 0.2 probability of a rate of return of 0.07, and the remaining probability of a -0.30 rate of return. What is the expected rate of return of Menger Corporation??
The rate of return on the U.S. government treasury bill is 0.05 and the expected rate of return on the Wilshire 5000 is 0.06. What is the required rate of return for a stock with a Beta 1.26?