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To compute the required rate of return for equity in a company using the CAPM, it is necessary to know all of the following EXCEPT:

 

the risk-free rate.

 

the beta for the firm.

 

the earnings for the next time period.

 

the market return expected for the time period.

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/04/05
Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

Correct option is "the earnings for the next time period."

Riaz Ahammed
by Riaz Ahammed , Financial Accountant , UTC Climate Controls & Security

The earnings for the next time period is not necessary to compute the required rate of return for equity in a company using CAPM.

Rossana Pangilinan
by Rossana Pangilinan , School Accountant , Al Ghaf Private School LLC

my answer is      C..........the earnings for the next time period

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

correct answer is there is more systematic risk involved for the common stock

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>> the earnings for the next time period.

 

Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

required rate of return for equity in a company using the CAPM, it is necessary to know all of the following EXCEPT the market return expected for the time period.

 

Bello Abubakar
by Bello Abubakar , Cinema 4D Render/Sketch UP, AutoCAD, ArchiCAD and Revit Specialist , Federal Housing Authority

C..............................................................

SHEIK MOHAMMED NOWHEED
by SHEIK MOHAMMED NOWHEED , Operations Coordinator , Adamallys LLC

Except the earnings required for the next time period

Anas  Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

c-------------------------the earnings for the next time period.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

Correct answer is(D)m.....

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

the earnings for the next time period. is correct answer.,,,,,,,,,,,,,,,,,...................,,,,,,,,,,,,,,

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