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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 29 times)

tth

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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%


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Marked as best answer by tth on Apr 25, 2021

asdfasdf

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tth

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


parker125

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Reply 3 on: Yesterday
Excellent

 

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