The weighted average of a firm's expected return on its stock and ...

[plus1]

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

[reelove4eva]

Answer to Question 1

D

Answer to Question 2

C

[plus1]

Thanks for the timely response, appreciate it

[amandalm]

Great answer, keep it coming