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Author Question: On-line broker Swab-Qtips has a beta of 1.1, and its market return and risk-free rates are 15% and ... (Read 31 times)

dollx

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Question 1

Neeson Co. paid dividends in the last three years of $3.00, $3.15, and $3.31, respectively. The current stock price of Neeson is $30.00. Assuming the next dividend will grow at the same rate as the last three years, what is Neeson's cost of equity?
◦ 16.62%
◦ 10.00%
◦ 11.59%
◦ 16.03%
◦ 12.52%

Question 2

On-line broker Swab-Qtips has a beta of 1.1, and its market return and risk-free rates are 15% and 5%, respectively. What is Swab's cost of equity?
◦ 18%
◦ 10%
◦ 25%
◦ 16%
◦ 26%


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Marked as best answer by dollx on Apr 25, 2021

l.stuut

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dollx

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


matt95

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Reply 3 on: Yesterday
:D TYSM

 

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