The risk-free rate of return is 3% and the expected return on the market portfolio is 14%. Oklahoma
Oilco has a beta of 2.0 and a standard deviation of returns of 26%. Oilco's marginal tax rate is 35%.
Analysts expect Oilco's net income to grow by 12% per year for the next 5 years. Using the capital
asset pricing model, what is Oklahoma Oilco's cost of retained earnings?
A) 18.6% B) 21.2% C) 25.0% D) 22.8%
C
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A broker presented a written offer to their seller from a buyer. The offer stated that upon acceptance, the buyer would deposit $25,000 in escrow. The seller made a counteroffer but did not change the amount of the deposit and sent it back to the buyer. The buyer agreed to all the changes but lowered the amount of the deposit to $10,000. Which of the following statements is not correct?
a. The broker needs to get the seller's acceptance of the counteroffer. b. The buyer has created a counteroffer due to the changed deposit amount. c. The contract is fully enforceable. d. No contract exists.
What is the best course of action when asked a difficult or complex question?
A) Ask for clarification. B) Give a simple, direct answer. C) Ask audience members to weigh in on the subject. D) Give a vague answer and move on to the next question or new topic. E) Offer to get a complete answer as soon as possible, after the presentation.