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Question 2 1 pts The Tubby Ball Corporation's common stock has a beta of 1.3. If the risk-free rate is 4.5 percent and the expected
Question 2 1 pts The Tubby Ball Corporation's common stock has a beta of 1.3. If the risk-free rate is 4.5 percent and the expected return on the market is 12 percent, what is Tubby Ball's cost of equity? Choose the range that includes the correct solution. Less than 14% Greater than or equal to 14%, but less than 15% Greater than or equal to 15%, but less than 16% Greater than or equal to 16%, but less than 17% Greater than or equal to 17% Question 3 1 pts Holdup Bank has an issue of preferred stock with a $6 stated dividend that just sold for $92 per share. Holdup has a 34% tax rate. What is the bank's cost of preferred stock? Choose the range that includes the correct solution. Less than 3% Greater than or equal to 3%, but less than 4% Greater than or equal to 4%, but less than 5% Greater than or equal to 5%, but less than 6% Greater than or equal to 6%
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