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Author Question: The market yield on Spice Grills' bonds is 15%, and the firm's marginal tax rate is 33%. What is ... (Read 46 times)

tth

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on: Apr 25, 2021

Question 1

The dividend just paid on Thompson Industry stock was $2 per share and it is expected to grow 8% each year. If the stock is currently selling at $30 per share, what is Thompson's cost of equity? (Round to the nearest percent.)
◦ 13%
◦ 18%
◦ 12%
◦ 15%
◦ 21%

Question 2

The market yield on Spice Grills' bonds is 15%, and the firm's marginal tax rate is 33%. What is their shareholders' required return if the equity risk premium is 4%?
◦ 15%
◦ 11%
◦ 14%
◦ 19%
◦ 12%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by tth on Apr 25, 2021

asdfasdf

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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tth

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

raili21

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

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