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ake a Test-Meranda Nelson-Macrosoft Edge B https://www.mathd 185417551ent BUSN 2320 FALL 2018 Meranda Nelson&12/10/18 6:47 PM Test: Module 4 Test Time Remaining: 01:11:43 Submit Test

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ake a Test-Meranda Nelson-Macrosoft Edge B https://www.mathd 185417551ent BUSN 2320 FALL 2018 Meranda Nelson&12/10/18 6:47 PM Test: Module 4 Test Time Remaining: 01:11:43 Submit Test This Question: 4 pts 13 of 34 (10 complete This Test: 100 pts possible wild oommon seek for the needed lunds If the current risk-tree rate i5 6 3% and the expected marka Cost of equity: SML. Stan is expanding his business and return i, 13 9%, the cost of equity for Stan is a. 1 1 32% if the beta of the stock is 0 66 b. 1268% the beta ofthe stock is 0 84 . 1451% if the beta ofthe stock ls 108 d, 1724% if the beta ofthe stock 144 Suppose Stan had to delay the sale of the common stock sor sis monthes, Whisn he fnaly did sel the stock the risk-toe rate had laflen to 53% but the di on the cost of equily ty wjating sox monehs, using the sour differeet betas? What do you noice about he increases in the cost of equity as bsta increases? a. What is the new cost of equity if the beta of the stock 066 % (Round to two decmi places) b. What is the new cost of equity if the beta of the stock is 0 847 Or (Round to two decimal places c. What is the new cost of squty if the beta of the stock is 1 087 your answers

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