Calculate the arithmetic solution

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1. What would be the cost of retained earnings equity for Tangshan Mining if the expected return on U.S. Treasury Bills is 5.00%, the market risk premium is 10.00 percent, and the firm's beta is 1.3? (Please calculate the arithmetic solution and show your work)

2.Given the following statement, please indicate whether it is true or false, and why: "The risk-adjusted discount rate approach to evaluating projects with unequal lives converts the net present value of unequal-lived, mutually exclusive projects into an equivalent annual amount." (Limit your answer to less than 100 words)

 

 

Reference no: EM13275430

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