Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market risk-premium is 6.00 percent and the risk-free rate is 4.00 percent. What is the company's cost of equity if Tribbles' systematic risk is 70.00% larger than the market portfolio? Enter your answer as a percent rounded to two decimals, but don't include % sign. Numeric Response
Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market risk-premium is 6.00 percent and the risk-free rate is 4.00 percent. What is the company's cost of equity if Tribbles' systematic risk is 70.00% larger than the market portfolio? Enter your answer as a percent rounded to two decimals, but don't include % sign. Numeric Response
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market risk-premium is 6.00 percent and the risk-free rate is
4.00 percent. What is the company's cost of equity if Tribbles' systematic risk is 70.00% larger than the market portfolio? Enter your answer as a percent
rounded to two decimals, but don't include % sign.
Numeric Response](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcfb1deb-e3a8-44ba-b47f-59e115654ebf%2F5f5f8a9c-26e0-4555-9042-ef91303e0cac%2F1bwpvyr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market risk-premium is 6.00 percent and the risk-free rate is
4.00 percent. What is the company's cost of equity if Tribbles' systematic risk is 70.00% larger than the market portfolio? Enter your answer as a percent
rounded to two decimals, but don't include % sign.
Numeric Response
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