An all-equity firm has a beta of 1.27. What will be the equity beta if the firm adopts a debt-to-equity ratio of 42? Multiple Choice 1.774 1.803 1.829 1.786 1.843
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- 1. Suppose your company has an equity beta of .58 and the current risk-free rate is 6.1%. If the expected market risk premium is 8.6%, what is your cost of equity? Group of answer choices A) 14.7% B) 11.1% C) 9.64%Using the equity asset valuation model (CAPM) equation, determine the required return for the shares of the following companies, if the market return is 7.50% (Rm = 7.50%) and the risk-free asset return is 1.25% (RF = 1.25%). You must show all counts. Stock Beta SKT 0.65 COST 0.90 SU 1.42 AMZN 1.57 V 0.94If a firm's beta is 1.1, the risk-free rate is 6%, and the expected return on the market is 14%, what will be the firm's cost of equity using the CAPM approach? Select one: a. 14.80% b. 21.40% c. 8.80% d. 15.40% e. 22.00%
- What is the beta of a firm whose equity has an expected return of 21.3 percent when the risk-free rate of return is 7.0 percent and the expected return on the market is 18.0 percent? Select one: a. None of these O b. 0.79 O c. 1.30 O d. 1.57The risk-free rate is 3%, the market risk premium (MRP) is 8%, and the Beta of Lotsa Dough common stock is 0.9. What is LotsaDough's cost of common equity using the SML/CAPM approach? Group of answer choices 7.5% 10.2% 13.7% 15.1%The asset of company X have a beta equal to 1. Assume that company’s debt has a beta to 0.5 and that X’s equity has a Beta equal to 2, consider an investor who holds 10% of company’s debt and 10% of the company’s equity, the beta of the investor’s portfolio is equal to? A. 0.25 B. 1 C. 1.25 D. 0.1
- Consider the following information for Vine Inc.: Beta: 1.39 Risk-free rate: 7% Market Risk Premium: 11% What is the cost of the common equity of Vine Inc.? 22.29% 19.21% 32.02%A firm's stock has a beta of 1.7. The expected T-bill return is 3.7%. and the expected market return is 7%. What cost of equity should the firm use when calculating its WACC?The risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent. If the firm's stock has a beta of 1.21, what is the cost of equity? Group of answer choices 11.40% 13.82% 12.79% 12.47% 12.61%
- Dhofar Silicon Services has a Beta = 2.42 The risk free rate on a treasury bill is currently 8.2% and the market return has averaged 16%.What is the cost of equity ? O a. All the given answers in this question are not correct O b. 0.46 O c. 0.2708 O d. 0.19 O e. 0.4692 | https://moodle1.du.edu ENG ailo 91% F2 F3 F10 F4 F5 F7 F8 F9 @ %23 24 % & 2 3 4. 6 8. R Y U 10 A S DEFJ GYH1J - K C V BY NiM IS Alt この > 1.Suppose you are an analyst with the following data: rRF = 5.5%, rM - rRF=6%, b = 0.8,D1 = $1.00, P0 = $25.00, g = 6%, and rd = firm’s bond yield = 6.5%. What is this firm’scost of equity using the CAPM, DCF, and bond-yield-plus-risk-premium approaches?Use the midrange of the judgmental risk premium for the bond-yield-plus-risk-premiumapproach.Risk free rate = 5.00%; market return = 11.00%; and beta = 1.05. How much is the firm's cost of equity based on the CAPM? 11.30% 11.64% 11.99% 12.35%