Cooley Company's stock has a beta of 1.28, the risk-free rate is 2.25%, and the market risk premium is 5.50%. What is the firm's required rate of return? Do not round your intermediate calculations.
A. 9.29%
B. 9.94%
C. 10.96%
D. 8.55%
E. 11.52%
Answer: A
You might also like to view...
In their business partnership, George has an ownership interest of 55% and Ben has an ownership interest of 45%. In the current year, they purchase equipment for $9900. In order to finance the equipment purchase, George makes a cash contribution of $7400 and Ben makes a cash contribution of $2500 to the partnership. Based on the information provided, which of the following is TRUE regarding the partnership balance sheet?
A) Both George, Capital and Ben, Capital will increase by $9900. B) George, Capital will increase by $7400 and Ben, Capital will increase by $2500. C) George, Capital will increase by $9900 and Ben, Capital will remain unchanged. D) George, Capital will increase by $5445 and Ben, Capital will increase by $4455.
If a cost can be reduced to zero in the short run without significantly harming the organization, the cost is a
a. variable cost. b. committed cost. c. discretionary cost. d. product cost.
List three ways to organize a résumé and describe when each résumé is appropriate
Riker Co is considering which of 4 different projects to undertake in order to maximize its net present value (NPV). Define Xi as a binary variable that equals 1 if project i is undertaken and 0 otherwise, for
i = 1, 2, 3, 4. The NPV and required capital (in millions) for each project are listed below. Project Net Present Value Capital Required 1 60 7 2 50 10 3 40 6 4 20 3 Which of the following represents the constraint(s) stating that project 1 must be undertaken and at least one of the other projects must be undertaken? A) X1 + X2 ? 1, and X1 + X3 ? 1, and X1 + X4 ? 1 B) X1 ?1, and X2 + X3 + X4 ? 1 C) X1 + X2 ? 1, and X1 + X3 ? 1, and X1 + X4 ? 1 D) X1 ?1, and X2 + X3 + X4 ? 3 E) X1 + X2 + X3 + X4 ? 2