The market yield on Spice Grills' bonds is 15%, and the firm's marginal tax rate is 33%. What is their shareholders' required return if the equity risk premium is 4%?
A) 15%
B) 11%
C) 14%
D) 19%
E) 12%
D
Business
You might also like to view...
How may batch processing be used to improve operational efficiency?
Business
Which accounting convention describes a note to the financial statements explaining the company's method of revenue recognition?
a. Comparability and consistency b. Materiality c. Conservatism d. Full disclosure
Business
Businesses that engage in ultrahazardous activities are not liable for any injuries the activities cause
Indicate whether the statement is true or false
Business
What is a ‘branded house’?
a. a department store b. a company that sells multiple brands c. an alternative name for corporate branding d. a single master brand which spans a set of sub brands e. a company that owns multiple individual and competing brands
Business