Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 26, 2024

The market vale of equity divided by book value of equity pricing multiple for the firm is 2.75 and the risk free rate is 3.65%.

The market vale of equity divided by book value of equity pricing multiple for the firm is 2.75 and the risk free rate is 3.65%. What is the capitalization rate for the book value equity?

a. 32.71%

b. 36.36%

c. 63.64%

d. 2.75%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Financial Management Principles And Applications

Authors: Arthur J. Keown

9th Edition

013033362X, 9780130333629

More Books

Students also viewed these Finance questions

Question

★★★★★

Corby, an experienced tire broker in Wales, offered to sell tires to Chappell, a tire broker in California. Chappell contacted two U.S. tire distributors, Jenkins in Tennessee and Hein in Ohio, and...

Answered: 1 week ago

Question

★★★★★

Find the time Saturn takes to orbit the sun.

Answered: 1 week ago

Question

★★★★★

What is the logit transformation for a probability ?????

Answered: 1 week ago

Question

★★★★★

Employees at your company disagree about the accounting for sales returns. The sales manager believes that granting more generous return provisions and allowing customers to order items on a bill and...

Answered: 1 week ago

Question

★★★★★

Effective annual interest rate: Cyclone Rentals borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 6.75 percent, and the compounding is daily, what is the effective annual...

Answered: 1 week ago

Question

★★★★★

1 111 ANNUAL REPORT ANALYSIS PROJECT (100 PTS.) DUE DATE: Thursday, June 17 (by 11:59 P.M.) PURPOSE: Working within a team, analyze the financial condition and performance of a corporation using...

Answered: 1 week ago

Question

★★★★★

4. The exit gas from an alcohol fermenter is an air-CO mixture containing 10 mol% CO that is to be absorbed in a 5.0 M triethanolamine (TEA) solution containing 0.020 mol CO2/mol TEA. The column...

Answered: 1 week ago

Question

★★★★★

An aluminum foil manufacturer wants to improve the quality of his product and is trying to develop a probability model for the flaws that occur in a sheet of foil. Assume that X, the number of flaws...

Answered: 1 week ago

Question

★★★★★

The temperature T = T(x,y) in C at point (x,y) satisfies Tx (1,2)=4 and Ty (1,2)=-8. If 4t-4 x = e t=1 sec. cm and y = 2 + In t cm, find the rate at which the temperature T changes when When t = 1...

Answered: 1 week ago

Question

★★★★★

Exercise: Let f(x) = 8x-4 - (a) Plot the graph of f(x) and f'(x). (b) Identify the points where f(x) is not differen- tiable..

Answered: 1 week ago

Question

★★★★★

. Straight rankings . Paired comparisons . Forced distribution Critical incident method

Answered: 1 week ago

Question

★★★★★

2. What steps do you believe the government should take to reinforce the viability of the Sarbanes-Oxley Law?

Answered: 1 week ago

Question

★★★★★

3. Most employees do not disclose the fraud and corruption they observe in the workplace, and, therefore, criminal and immoral behaviors continue to flourish. Who or what can intercept this lack of...

Answered: 1 week ago

Question

★★★★★

3. Self-awareness is very important. As we get to know ourselves, we can identify barriers to acceptance by others. Once you have identified your most preferred communication style, you have taken a...

Answered: 1 week ago

Previous Question Next Question