3-Calculate Cost of Equity from the following ? EPS = 12,000 Market value = 100,000 Tax = 40%

a.

13.33

b.

None of these

c.

12 %

d.

7.2%

4-Which of the following is not true about Systematic risk?

a.

It is non-diversifiable and unavoidable in nature

b.

Systematic risk is the risk the holder of a well diversified portfolio is exposed to

c.

It stems from the operating environment of business and financing pattern of the firm

d.

It originates from forces that affect the overall market