A firm has a beta of 1.2. The market return equals 14 percent and the risk-free rate of return equals 6 percent. The estimated cost of common stock equity is ________
A) 6 percent
B) 7.2 percent
C) 14 percent
D) 15.6 percent
D
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Bill the producer is collecting the initial premium on a health policy. Which of the following statements is true?
A) The contract is not in force without the initial premium being paid B) A partial initial premium is acceptable C) The insured has no advantage to pay the initial premium at the time of application D) A claim must be honored by the insurer even if an initial premium is not paid
General Motors' handling of charges by Ralph Nader that their Corvair was "unsafe at any speed" is an example of corporate public relations professionals' failure to ________
A) interpret and convey to management what the public really thinks B) analyze and convey to the public why management feels the way it does C) understand how corporate influence can change public opinion D) interpret how public influence can be ignored if it is in the best interest of shareholders