subject
Business, 12.03.2020 22:39 shauntleaning

The Shoe Building Inc. is a 100% equity-financed company (no debt or preferred stock); hence, its WACC equals its cost of common equity. The Shoe Building Inc.’s retained earnings will be sufficient to fund its capital budget in the foreseeable future. The company has a beta of 1.50, the risk-free rate is 5.0%, and the market return is 6.5%.
What is The Shoe Building Inc.'s cost of equity?

a) 8.75% b)24.13% c) 16.25% d) 7.25%

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 13:30
Hundreds of a bank's customers have called the customer service call center to complain that they are receiving text messages on their phone telling them to access a website and enter personal information to resolve an issue with their account. what action should the bank take?
Answers: 2
question
Business, 22.06.2019 19:40
Anita has been named ceo of a popular sports apparel company. as ceo, she is tasked with setting the firm's corporate strategy. which of the following decisions is anita most likely to makea) whether to pursue a differentiation or cost leadership strategy b) which customer segments to target c) how to achieve the highest levels of customer satisfaction d) what range of products the firm should offer
Answers: 2
question
Business, 22.06.2019 22:40
Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.
Answers: 3
question
Business, 23.06.2019 02:00
Heyak believed that the economy could be hard to measure because
Answers: 2
You know the right answer?
The Shoe Building Inc. is a 100% equity-financed company (no debt or preferred stock); hence, its WA...
Questions
question
History, 06.05.2021 19:50
question
Mathematics, 06.05.2021 19:50
question
Mathematics, 06.05.2021 19:50
question
Mathematics, 06.05.2021 19:50
question
Chemistry, 06.05.2021 19:50
question
Mathematics, 06.05.2021 19:50
question
Mathematics, 06.05.2021 19:50
Questions on the website: 13722359