H2W Technologies is considering raising capital to expand its offerings of 2-phase and 4-phase lin­ear stepper motors. The beta value for its stock is high at 1.41. Use the capital asset pricing model and a 3.8% premium above the risk-free return to determine the cost of equity capital. The risk-free return is 3.2% per year.

What will be an ideal response?


Re = 0.032 + 1.41(0.038)
= 0.0856 (8.56%)

Trades & Technology

You might also like to view...

What does the low-voltage thermostat operate?

What will be an ideal response?

Trades & Technology

Solar radiation received at the Earth’s surface varies because of atmospheric ___________.

a. decibels b. attenuation c. sones d. air pockets

Trades & Technology

Which is a primary safety requirement when replacing an older furnace?

A) properly discarding used materials B) relocating the thermostat C) removing the jumper D) properly grounding the furnace cabinet

Trades & Technology

Solve the following problem involving combined operations.  13 x (3 + 5) - 7 =

What will be an ideal response?

Trades & Technology