Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 29, 2024

Assuming that the expected market retum [E(R(m)] is 12% and the risk-free rate of retum 12f is 9%, the cost of equity of a company

Assuming that the expected market retum [E(R(m)] is 12% and the risk-free rate of retum 12f is 9\%, the cost of equity of a company which has a beta (p)of 1 i will be ciosest tor Select one: a. 13928 b. 4.92% C. 7.3878 d. 12,3%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Almanack Of Stanley Druckenmiller From Over 40 Years Of Investing Wisdom With Quantum Fund And Duquesne Capital Management

Authors: Rui Zhi Dong

1st Edition

B0B3NV2H9M, 979-8850611453

More Books

Students also viewed these Finance questions

Question

The supermarket warehouse inventory reduction plan will be implemented next month.

Answered: 1 week ago

Question

★★★★★

The balance sheets for Sports Unlimited for 2015 and 2014 are provided below. Required: 1. Prepare a vertical analysis of Sports Unlimiteds 2015 and 2014 balance sheets. Express each amount as a...

Answered: 1 week ago

Question

★★★★★

Suppose a firm has two business options to choose from and has asked you, a Business Mathematics student, to help it make a decision. Option "A" requires an immediate cost of $20,000 along with...

Answered: 1 week ago

Question

★★★★★

Let f and gare differentiable functions at x = 1 and that (1) = 2, ' (1) = 3, g (1) = 1 and g (1) = 4 Find d x-f(x) dr x-g(x) at x=1

Answered: 1 week ago

Question

★★★★★

A polished round shaft (6 mm dia.) is rotating and under a bending load. There is no torsion on this section of the shaft. It is initially under a fully reversed bending stress of 500 MPa. After...

Answered: 1 week ago

Question

★★★★★

4) In the past few years, the New Brandeis movement has prominence in US legal, economic and political thought. a) Briefly describe the emergence of the Chicago school with a particular focus on the...

Answered: 1 week ago

Question

★★★★★

In a demonstration a student drops a neutral polystyrene sphere toward the top of the dome of a negatively charged Vann de Graaff generator. The polystyrene sphere is coated with an electrically...

Answered: 1 week ago

Question

★★★★★

Construct a Decision Tree for a Process Specification Tom is reviewing the process for his firm's expense reimbursement policies with the new salesperson, Mary. "Our reimbursement policies depend on...

Answered: 1 week ago

Question

★★★★★

27.1 A company starts in business on 1 January 20X5. You are to write up the vans account and the provision for depreciation account for the year ended 31 December 20X5 from the information given...

Answered: 1 week ago

Question

★★★★★

Maintains a positive attitude, controlling own feelings of stress and anxiety when under pressure, to ensure that others are not affected adversely.

Answered: 1 week ago

Question

★★★★★

Demonstrates integrity, fairness and consistency, maintaining confidentiality and honesty in dealings with internal and external customers.

Answered: 1 week ago

Question

★★★★★

Demonstrates a strong focus towards achievement and success in self and others.

Answered: 1 week ago

Previous Question Next Question