Martha' s Interiors has a current beta of 1.2. The market risk premium is 6 percent and the risk-free rate of return is 4 percent
By how much will the cost of equity increase if the company completes an acquisition such that their company beta rises to 1.4?
A) 0.12 percent
B) 0.24 percent
C) 1.20 percent
D) 2.40 percent
E) 2.47 percent
C
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Sheehan, Inc provides the following income statement for 2017
Net Sales $240,000 Cost of Goods Sold 110,000 Gross Profit $130,000 Operating Expenses: Selling Expenses 45,000 Administrative Expenses 12,000 Total Operating Expenses 57,000 Operating Income $73,000 Other Revenues and (Expenses): Loss on Sale of Capital Assets (27,000 ) Interest Expense (1,000 ) Total Other Revenues and (Expenses) (28,000 ) Income Before Income Taxes $45,000 Income Tax Expense 5,300 Net Income $39,700 Calculate the times-interest-earned ratio. (Round your answer to two decimal places.) A) 73.00 times B) 45.00 times C) 39.70 times D) 46.00 times
The following are internal stakeholders, except:
A) employees B) labor unions C) shareholders D) customers