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Author Question: The weighted average of a firm's expected return on its stock and the interest rate that it pays for ... (Read 77 times)

plus1

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on: Jul 1, 2018
The weighted average of a firm's expected return on its stock and the interest rate that it pays for debt is known as the:
 
  A) internal rate of return.
  B) opportunity cost of capital.
  C) risk-free rate of return.
  D) company cost of capital.

Question 2

The beta for General Motors (GM) is 0.5, the risk-free rate is 4, and the market return is 9. What is GM's risk-adjusted discount rate?
 
  A) 4
  B) 4.5
  C) 6.5
  D) 9


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reelove4eva

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Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

C


plus1

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Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

coreycathey

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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