FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tele Ltd has a beta of 1.4 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 5

image text in transcribed

Tele Ltd has a beta of 1.4 and is trying to calculate its cost of equity capital. If the risk-free rate of return is 5 percent and the market risk premium (market return minus risk-free rate) is 6 percent, then what is the rate of market return? A. 15.14% B. 10.60% C. 11.00% D. 11.20%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Entrepreneurial Finance

Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva

1st Edition

1452274177, 978-1452274171

More Books

Students also viewed these Finance questions

Question

★★★★★
1. Who should be responsible for properly disposing of electronic products no longer neededconsumers or manufacturers? Is it appropriate to ship e-waste to developing countries? Discuss alternative...

Answered: 1 week ago

Question

★★★★★
.. In CandyStore.java: 2 3 package stores: import items.Candy: 5 6 public class CandyStore { private Candy [] candies; private int numofCandies; 8 9 public CandyStore (Candy [] candyStock)...

Answered: 1 week ago

Question

★★★★★
5. Discuss Paivios two-dimensional model of imagery use in sport. Why are there five types of imagery use if the model is two-dimensional in nature? How is imagery use measured?

Answered: 1 week ago

Question

★★★★★
Provide an explanation in support of or refuting the following statement: Humans would never develop natural immunity to a novel biological agent created in a laboratory Explain how super-antigens,...

Answered: 1 week ago

Question

★★★★★
If FinBeer paid a dividend of $50 in 2009, what was the retained earnings balance in 2008? rmation to answer questions 6 through 10: Item Accounts Payable Accounts Receivable Accurals Advertising...

Answered: 1 week ago

Question

★★★★★
Consider gross earnings of $96,000. - The standard deduction is $12,000 and itemized deduction is $8,000. - Social security tax rate is 6.2%; Medicare tax rate is 1.45%. How much is the taxable...

Answered: 1 week ago

Question

★★★★★
Score: 0/19 0/19 answered Question 7 A company produces steel rods. The lengths of the steel rods are normally distributed with a mean of 209.6-cm and a standard deviation of 0.8-cm. For shipment, 47...

Answered: 1 week ago

Question

★★★★★
EXPENSES TOTAL ($) MY 2022 (Year 1) MY 2023 (Year 2) MY 2024, Year 3 Revenues[SI1] Sales $6,400,000 $8,524,000 $10, 366,000 Diversity Grant $1,000,00 $1,000,000 $ 1,000,000 EXPENSES TOTAL ($) MY 2022...

Answered: 1 week ago

Question

★★★★★
Describe the usefulness of applying "What, Why, When, How, Where and Who" principles in the search for and extraction of digital evidence. Consider the way in which you would undertake a computer...

Answered: 1 week ago

Question

★★★★★
Calculate the angle between the [1,1,1] and [0,2,1] directions in a cubic system.

Answered: 1 week ago

Question

★★★★★
2.Raw computation question. Let X and Y be two random variables with the joint density f(x, y) = 2 - - x 1 + 2y 8(e7/41) 4(e7/4 - 1) where 0 x 2 - 2 and 1 y e7/4. a) Please calculate the marginal...

Answered: 1 week ago

Question

★★★★★
3. If you were an MWEB customer, would you consider MWEBs response to the security breach to be acceptable? Why or why not? BMWEB, launched in 1997, became South Africas leading ISP in 1998. It has...

Answered: 1 week ago

Question

★★★★★
3. What makes Stuxnet different from other cyberwarfare attacks? How serious a threat is this technology? In July 2010, reports surfaced about a Stuxnet worm that had been targeting Irans nuclear...

Answered: 1 week ago

Question

★★★★★
1. What technology issues led to the security breach at MWEB? BMWEB, launched in 1997, became South Africas leading ISP in 1998. It has established itself as a company that provides a cutting-edge...

Answered: 1 week ago

Previous Question Next Question