Q31 Q32

Jacque Ewing Drilling, Inc. has a beta of 1.3. If the risk-free rate of return is 8 percent and the expected return on the market is 12 percent, what is the firm's after-tax cost of equity capital if the firm's marginal tax rate is 0 percent? Question 32 1 pts If the market risk premium is currently 6 percent and the risk-free rate of return is 4 percent, then what is the expected return on a common share with a beta equal to 2