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sergey [27]
3 years ago
5

The Up and Coming Corporation's common stock has a beta of 0.92. If the risk-free rate is 0.01 and the expected return on the ma

rket is 0.06, what is the company's cost of equity capital?
Business
1 answer:
SIZIF [17.4K]3 years ago
3 0

Answer:

The company's cost of equity capital is 0.056

Explanation:

cost of equity capital

= risk free rate + beta*(expected return on market - risk free rate)

= 0.01 + 0.92*(0.06 - 0.01)

= 0.056

Therefore, The company's cost of equity capital is 0.056

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ollegr [7]

Answer:

Explanation:

I will give a basic hint to understanding this problem

Prevailing technique or what is best known as "Dominant Strategy" is an activity profile that is best for a specific player review of what different players are picking. for this situation there is no prevailing procedure for any player on the grounds that there is no single activity profile that expands the result for any player.

So we can say from this observations that the following is valid;

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There are two Nash equilibria for this situation. Both the organizations are charging a low cost and both the organizations are charging a significant expense.

As such they can augment their benefit given what the adversary is doing.

I hope this explains the observation seen.

cheers I hope this helps

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Explanation:

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This has led to more people seeking assistance thereby increasing the number of people needing assistance and invariably increasing the cost of these federal assistance programs.

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Stolb23 [73]

Answer:

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The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world.

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An import can be defined as a type of trade which typically involves the purchase of goods and services from a foreign country for domestic use.

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