1) By 2020 the rate of return of Treasury Bill was 5.25% and market rate...
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1) By 2020 the rate of return of Treasury Bill was 5.25% and market rate of return was 9.75%, with 93 of beta for J\&M Warehouse's common stock. What is the expected rate of return of its common stocks? 2) Consider the previous exercise and calculate beta if the market rate of retum was 12.25%. 3) By 2021 the G\&J's financial instrument was 13.7% rate of return and the Treasury Bill was 7.65%. If beta was 1.85 , calculate the market rate of return and calculate the market risk premium. 4) The capital structure of MPA Consulting Ine. is distributed as follow (in millions): $835 to equity and 35% (total value) to debt. If the rate of return of capital required is 11.5% and rate of return of debt is 6.25%. Calculate the debt, the firm's value and the expected rate of return on a portfolio of all the firm's securities if the firm faces a 30% corporate income tax rate
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