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number 3 and 4 2 UMO Cookin Just paid its annual dividend of So S a share. The stock has a market price $13 and

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number 3 and 4

2 UMO Cookin Just paid its annual dividend of So S a share. The stock has a market price $13 and a beta of 112. The return on the uS. Treanury bi is 2.5% and the market risk premium is 68%. What is the cost of equiny? 9.98% A. 30.04N 10.12% 10.37% D. 10AS% E. The cost of eguity of JaneCo Finance is 12%. It the relevant eisk feee rate is 3.5% and the expected market retur is 9X, what is JaneCo's Beta ratio? 0.64 0.94 A. B. 1.00 155 D. 1.75 E. The current Risk Free US treasury rate is 4%. Letsgobiu Transport has a Beta ratio of 4 50 and a current Cost of Equity of 12%. What is the current expected market return? 9% A. 10% B. C. D. 12% 16% 20% 5 True or False, in CAPM, the Beta ratio is defined as the standard deviation of the returns of a given security over time, times the standard deviation of the market returns, divided by the variance of the market returns. True False

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