Respuesta :
Company's risk premium is C. 24.90%
What is a business risk premium?
The risk premium is the excess return above the risk-free rate that investors demand to compensate for the increased uncertainty associated with risky assets.
The risk premium is comprised of five major risks: business risk, financial risk, liquidity risk, exchange-rate risk, and country-specific risk. These five risk factors all have the potential to reduce returns, so investors must be adequately compensated for taking them on.
The risk premium is the additional return that investors receive in addition to the risk-free rate as compensation for investing in risky assets.
Business risk, financial risk, liquidity risk, exchange-rate risk, and country-specific risk comprise the risk premium.
The uncertainty about an investor's ability to exit an investment, both in terms of timeliness and cost, is referred to as liquidity risk.
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