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Slav-nsk [51]
3 years ago
10

The up and coming corporation's common stock has a beta of 1.05. if the risk-free rate is 5.3 percent and the expected return on

the market is 12 percent, up and coming's cost of equity is percent. (do not include the percent sign (%). round your answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
Ugo [173]3 years ago
6 0

Cost of equity is calculated as -

Cost of equity = Risk free return + Beta * (Market risk - Risk free return)

Given,

Risk free return = 5.3 %

Market risk = 12 %

Beta = 1.05

Cost of equity = 5.3 % + (1.05*(12-5.3%))

Cost of equity = 12.335 % or 12.24 %

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The Jack Frost Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid $ 11 comma 000 for ten
Svet_ta [14]

Answer:

a. $11,000

b. $2,200

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So,

a. Cash basis = $11,000

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3 years ago
Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often mak
Kipish [7]

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However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.

5 0
3 years ago
Ecosystem services ________. are required to rebalance natural systems that we have disturbed are economically valuable services
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Another answer to go along with the rest is (contribute to keeping ecosystems productive) I hope this helps 
4 0
4 years ago
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p
raketka [301]

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

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Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

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7 0
3 years ago
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