Order the answer to: Management at Hirschman Engineering has…
Question | Management at Hirschman Engineering has asked you to determine the capital based on the company’s common stock. The company wants you to use two methods: the method and the CAPM. Last year, the first year for dividends, the stock paid $0.75 per share on the average of $11.50 on the New York Stock Exchange. Management hopes to grow the rate at 3% per year. Hirschman Engineering stock has a volatility that is higher than the norm at 1.3. If safe investments are returning 5.5% and the 3% growth on common is also the premium above the risk-free investments that Hirschman Engineering plans to pay, calculate the capital using the two methods. |
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Subject | business-economics |
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