common stock has a beta of 1. if the risk free rate is 4.71 percent and the expexted return on the market is 12.39 percent what is the companys cost of equity capital.
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common stock has a beta of 1. if the risk free rate is 4.71 percent and the expexted return on the market is 12.39 percent what is the companys
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- Über passes the following Tenets of investing as listed in the book 'The Warren Buffett Way'? 1. Business Tenets 2. Management Tenets 3. Financial Tenets 4. Market Tenets None of them 1 and 4 only O All of them 2 and 3 only 2 and 4 onlyAs the manager of ABC Bank the shareholders are not satisfied that you (the manager) have managed the capital requirement effectively. The capital requirement is below the requirement of the Bank of Canada. Explain in no more than 6 sentences what strategies you can employ to ratify the problem of capital adequacyBased on the above figures and the definition of debt equity percentages presented in the hope section for page 5 of the camera intro journal, the companies. Equity percentages ran into the near sole percentage like 25% and 75% of its current ratio are
- . When choosing between long and short term borrowing, which of the following is not usually a relevant consideration for a company? Any costs associated with refinancing, such as arrangement fees and penalties. Likely interest rate movements. Matching the term of the loan with the nature of the assets being financed. The principal agent problem.Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. (Use a 365-day year. Round your answer to the nearest cent.) P = $180,000, r = 3%, t = 2 1/4, compounded monthly A = $The major difference between realizing a capital loss or a business investment loss is the sale of shares or write-off of debts of a Small Business Corporation. True False
- One year ago, you wrote a put option with strike price $30 and one year to expiration. Option premium was $12. Ignore the interest rate. Today is the expiration day, and you still have an open short position in the put. The underlying stock is trading at $42. Your profit is a. Zero. You just broke even. b. $18 c. $42 d. $12Investors tend to only invest in stocks of companies that pay high dividends. True FalseDiscuss the ethical considerations involved in financial statement analysis.
- A 9 percent preferrred stock for Micky's Corp. is currently selling for $75 a share. What is the cost of preferred stock? Select one: a. 12.00 percent b. 9.27 percent c. 4.76 percent d. 10.47 percentClass book: Fundamentals of Corporate Finance by Brealey, Myers, and Marcus Cost of Capital. Why do financial managers refer to the opportunity cost of capital? How would you find the opportunity cost of capital for a safe investment?Suppose you own a mutual fund which has 17,000,000 shares outstanding. If its total assets are $38,000,000 and its liabilities are $7,000,000, find the net asset value (in $) of the fund. Round to the nearest cent. $