What is the abbreviation for the overall return

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Reference no: EM132759215

Problem 1: What's the abbreviation for the overall return that a firm must make on its existing assets, used as the required rate of return on any investment that has essentially the same risks as existing operations?

A. WACC

B. ROE

C. CM

D. NPV

Problem 2: Analysts project Microsoft (MSFT) will have an annualized dividend of $1.50 and a long-term growth rate of 10 percent. Currently, the stock price is $60. Using the dividend growth model approach, what's the implied cost of equity?

A. 12.5 percent

B. 11 percent

C. 10 percent

D. 2.5 percent

Reference no: EM132759215

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