Rockey9258 Rockey9258

21-12-2020
Business

contestada

What would be the cost of retained earnings equity for Tangshan Mining if the expected return on U.S. Treasury Bills is 5.00%, the market risk premium is 10.00 percent, and the firm's beta is 1.3?
A) 18.0%
B) 11.5%
C) 10.0%
D) none of the above

Respuesta :

Parrain Parrain

22-12-2020

Answer: A) 18.0%

Explanation:

Can be calculated by Capital Asset Pricing Model;

Cost of retained earnings/ Required return = Risk free rate + beta * (Market premium)

= 5% + 1.3 * 10%

= 18%

Answer Link

Otras preguntas

The ability to learn from oneâ€™s experiences, acquire knowledge, and use resources effectively when faced with challenges or problems is the psychologistâ€™s w

Kirsten walked 230 meters in 50 seconds. What was Kirsten's rate of speed?

3m has over 80 percent of its worldwide manufacturing and service facilities that are iso 9000 certified. this certification gives 3m confidence that

Handling conflicts through accommodation, avoidance, or competition is ineffective from an organizational point of view because the parties do not cooperate wit

In an 18-mile duathlon you run then Bike 12 miles and then run again the two runs are the same distance find the distance of each run

Marlena tells her therapist that she often feels helpless and unable to accomplish her goals. her therapist responds by acknowledging her feelings, restating wh

A line has equation y=x−5. The line is shifted 3 units to the left and 1 unit up. Which points are on the graph of the line after these 2 transformations are ap

When solving -1/5 (x - 25) = 7, what is the correct sequence of operations? A- multiply each side by -1/5, subtract 25 from each side B- multiply each side by 5

In which compound does the bond between the atoms have the least ionic character? 1. hf 2. hcl 3. hbr 4. hi?

A different element has chemical properties that are similar to the properties of sodium. Which of the following statements about this element is probably true?