greatsavagebeast
greatsavagebeast
12.12.2019 • 
Business

The beta of an mnc acquisition target is 1.38 and last year’s s& p 500 return was at 14.92%, while for dedicated savers, t-bills languished at a very dismal 2.21%. with this information, what is the required rate of return for the mnc if they were to acquire this direct foreign investment? ke = rf+b(rm-rf) where ke= required return on stock rf = risk-free rate of return rm = market return b = beta of stock

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