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Author Question: Ben's Ice Cream just paid their annual dividend of $.75 a share. The stock has a market price of $32 ... (Read 48 times)

student77

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on: Apr 25, 2021

Question 1

A firm's pre-tax cost of debt is 10%. If the firm is of average risk, what is the cost of equity using the bond yield plus premium approach?
◦ 15%
◦ 13%
◦ 14%
◦ 10%
◦ 11%

Question 2

Ben's Ice Cream just paid their annual dividend of $.75 a share. The stock has a market price of $32 and a beta of .90. The return on the U.S. Treasury bill is 4 percent and the market has a 12 percent rate of return. What is the cost of equity?
◦ 7.24 percent
◦ 8.67 percent
◦ 11.20 percent
◦ 12.92 percent
◦ 14.80 percent
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by student77 on Apr 25, 2021

Animal_Goddess

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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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student77

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

mcarey591

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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