Procter and gamble (pg) has a june fiscal year-end. on june 30, 2006, analysts expected the company to pay $1.33 dividends per share in fiscal year 2007. the company's market beta is estimated to be 0.7. assume that the risk-free rate is 5.7% and the market premium is 5%. during fiscal year 2006, the company's sales growth was 20.2%. however, analysis reveals that p& g's fiscal 2006 sales include eight months of sales from gillette after its acquisition by p& g during 2006. footnotes report pro forma sales that show what the income statement would have reported had gillette's full-year sales been included in both 2005 and 2006—specifically, p& g's sales growth would have been 4.4%.
(a) estimate p& g's cost of equity capital using the capm model. (round your answer to one decimal place.)

Alyssa works for an engineering firm that has been hired to design and supervise the construction of a highway bridge over a major river. the bridge will be a unique design, incorporating complex designs that will likely never be duplicated. how should alyssa deal with designing and overseeing the building of the bridge?

Consider the scenario below and let us know if you believe lauren smith's actions to be ethical. let us know why or why not. lauren smith is the controller for sports central, a chain of sporting goods stores. she has been asked to recommend a site for a new store. lauren has an uncle who owns a shopping plaza in the area of town where the new store is to be located, so she decides to contact her uncle about leasing space in his plaza. lauren also contacted several other shopping plazas and malls, but her uncle’s store turned out to be the most economical place to lease. therefore, lauren recommended locating the new store in her uncle’s shopping plaza. in making her recommendation to management, she did not disclose that her uncle owns the shopping plaza. if management decided to go with lauren's uncle's plaza, what additional information would be needed in the financial statements?

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. ( t or f)