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please help with a,b,c,d & then the multiple choice question thank you! Cost of equity: SML. Sian is expanding his business and will sel common
please help with a,b,c,d & then the multiple choice question thank you!
Cost of equity: SML. Sian is expanding his business and will sel common slock for the needed funds. If the currant risk-fiee rate is 4.3% and the expected market retum is 13.9% the cost of equity for Stan is a. 9.81% if the beta of the stock is 0.55 b. 12.72% if the beta of the stock is 0.87. c. 13.81% if the beta of the stock is 099 d. 16.90% if the beta of the slock is 1.33 14.9%. What was the offect on the cost of equly by wasing six months, using the four different betas? What do you notce about the increases in be cost of equty as bela incteases? a. What is the new cost of equity it the beta of the stock is 0.55 ? 56. (Round to two decinal places) b. What is the new cost of equity if the bete of the stock is 0.87 ? 6. (Round to two cecimal plabes) What is the new cost of equty t the bota of the stock a 0.99 ? 4 (Round to two decimal places) What is the new cost of equity it the beta of the stock is 1.33 ? 4. (Round to two decimal places) 16 (Round to two decimal places) d. What is the new cost of equity it the beta of the stock is 1.33 ? y. (Round to two decimal places) What do you notice about the change in the cost d equity as bela incresses? (Select be best response) decreases at an increating rate as beta increases equity increases is beta increaset Step by Step Solution
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