Author Question: Given the data below for the Zoom Corporation, its required return is 1. Beta = 0.8 2. Expected ... (Read 45 times)

faduma

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Given the data below for the Zoom Corporation, its required return is
 
  1. Beta = 0.8
  2. Expected price appreciation = 7
  3. Market risk premium = 8
  4. Risk free rate = 4
  5. Next year's dividend = 1.00
  6. Current market price = 50
  A)
 
  10.4.
  B)
 
  12.0.
  C)
 
  12.4.
  D)
 
  15.0.

Question 2

Debentures are expected to have a lower yield than secured bonds because the debentures are more
  risky and therefore less desirable.
 
  Indicate whether the statement is true or false


raili21

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Answer to Question 1

A

Answer to Question 2

FALSE



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