Question
GreenCo issued a 15-year, 7.0 percent, semiannual $1,000 par value bond 4 years ago. The bond currently sells for $1,015. What is the aftertax cost
GreenCo issued a 15-year, 7.0 percent, semiannual $1,000 par value bond 4 years ago. The bond currently sells for $1,015. What is the aftertax cost of debt if the company's tax rate is 21 percent?
Group of answer choices
7.00%
6.80%
5.53%
4.38%
5.38%
Stock in Boltonville Road Industries has a beta of 1.35. The market risk premium is 6.0 percent while T-bills (The Risk Free rate) are currently yielding 1.9 percent. What is the estimated cost of equity using the Capital Asset Pricing Model (CAPM)?
Group of answer choices
7.90%
12.94%
10.00%
13.5%
6.00%
You have a portfolio comprised of the following stocks. What is your portfolio beta?
Investment | Value | Beta |
A | $4,000 | 1.26 |
B | $7,000 | 0.94 |
C | $5,000 | 1.34 |
D | $6,000 | 1.02 |
Group of answer choices
1.04
1.11
1.23
1.26
1.00
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