Order the answer to: Management at Hirschman Engineering has asked you to determine t

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.
Subject	business-economics

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.

Subject

business-economics

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