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Author Question: Business risk refers to A) the variability of a firm's stock price. B) the variability of a ... (Read 119 times)

eruditmonkey@yahoo.com

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Business risk refers to
 
  A) the variability of a firm's stock price.
  B) the variability of a firm's expected earnings before interest and taxes.
  C) the risk associated with financing a firm with debt.
  D) the uncertainty associated with a firm's CAPM.

Question 2

Jiffy Co expects to pay a dividend of 3.00 per share in one year. The current price of Jiffy common
  stock is 60 per share. Flotation costs are 3.00 per share when Jiffy issues new stock.
 
  What is the
  cost of internal common equity (retained earnings) if the long-term growth in dividends is
  projected to be 8 percent indefinitely?
  A) 16 percent B) 14 percent C) 15 percent D) 13 percent



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connor417

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Answer to Question 1

B

Answer to Question 2

D




eruditmonkey@yahoo.com

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


Dinolord

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

 

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