Surf and Spray Inc. has a beta equal to 1.8 and a required return of 15% based on the CAPM. If the
market risk premium is 7.5%, the risk-free rate of return is
A) 2.0%. B) 3.4%. C) 1.5%. D) 4.1%.
C
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How did the Dolan v. City of Tigard case influence the laws restricting people's use of their property?
What will be an ideal response?
In the United States, government operates under federalism where both the federal and state regulate citizens
a. True b. False
Alpha Inc. combines the marginal cost of capital (MCC) and the investment opportunity schedules (IOS) on a graph. Which of the following areas on the graph shows the maximum excess of returns over costs??
A. The area that is below the WACC? B. ?The area that is above the IOS C. ?The point of intersection of WACC and IOS D. ?All the investment opportunities along the IOS line would have maximum excess of returns over costs. E. ?The area that is above the WACC but below the IOS.
The economic size-up involves:
A) the relationship between overall economic activity and the industry's performance assessment of the economy. B) identifying the current business cycle stage. C) anticipation of the interest rate change. D) All of the above.