BM702 คำตอบรายบุคคลข้อ 6.12

ข้อ 6-12

A. Calculate the required rate of return for Manning Enterprises, assuming that investors expect a 3.5 percent rate of inflation in the future. The real risk-free rate is equal to 2.5 percent and the market risk premium is 6.5 percent. Manning has a beta of 1.7, and its realized rate of return had averaged 13.5 percent over the last 5 years

Q. The equation k_i    = k_RF + (k_M – k_RF) b_i

                                     k_RF  = k^* + IP

      k_i   = required rate of return

    k_RF = risk-free rate

    b  = beta

    k^*  = real risk-free rate

    IP  = Inflation premium

    k_m-k_RF = market risk premium

Therefore,  k_i = (2.5+3.5)+ (6.5)*1.7

            …..k_i = 17.05