Information about cost of equity using capm

Reference no: EM1333153

What is the cost of equity of a firm that has a beta of 1.98 and a dividend yield of 6.58%? Assume the risk free rate is 4.43% and the return last year of the S&P500 was 12.29%.

a. 3.04%
b. 3.23%
c. 14.69%
d. 17.22%

Reference no: EM1333153

Questions Cloud

Opportunity cost of producing a motor : With respect to overhead, what is the opportunity cost of producing a Model 350 motor?

Laws affecting society : What is something valuable that you have learned about how laws can affect society?

Mcdonald''s key strategic objectives : Define and explain the McDonald's key strategic objectives.

Explain e-business issues : Explain E-Business Issues discuss one example of any e-Business failure and what could be done differently to prevent it from happening again

Information about cost of equity using capm : Find out the cost of equity of a firm that has a beta of 1.98 and a dividend yield of 6.58%? Suppose the risk free rate is 4.43% and the return last year of the S&P500 was 12.29%.

Optimal production of product to maximize profit : Assume Baxter Manufacturing has 50,000 machine hours available. What would be the optimal production of each product to maximize Baxter's profits?

Emerging critical competencies for hr managers : What do you think are emerging critical competencies for HR managers and What are the most important skills? Why are these skills important?

The policies and actions that promote good strategy executio : Discuss the policies and actions that promote good strategy execution such as best practices, rewards and punishment.

Explain presentation for new clients about the business : Explain Presentation for new clients about the Business and new clients that describes the services your company offers and the categories used to list available jobs

User Account

All Pages